China Synthetic Rubber Corporation 2018 Annual General Meeting

China Synthetic Rubber Corporation 2018 Annual General Meeting

Stock Code: 2104 MOPs Website: http: //mops.twse.com.tw/mops/web/index China Synthetic Rubber Corporation website Website: http: //www.csrcgroup.com China Synthetic Rubber Corporation 2018 Annual General Meeting Handbook Time: 9:00 a.m., Tuesday, June 26, 2018 Location: 3F., No.113, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City (Shimin Hall, Taiwan Cement Building)

Table of Contents Rules of Procedure for Annual General Meetings . . 1 Meeting Agenda . . 3 Matters to Report . . 5 Matters for Approval . . 28 Matters for Discussion . . 30 Matters for Election . . 36 Matters for Discussion . … 37 Ad Hoc Motions . . 38 Meeting Adjourned . . 38 Annex 1: 2017 Profit Distribution Table . . 39 Annex 2: Carbon Black Business Spin-Off Plan … … 40 Annex 3: Biotechnology Business Spin-Off Plan … … 52 Annex 4: Comparison of the Articles of incorporation before and after the amendment . . 68 Annex 5:List of candidates and the related information … … 72 Annex 6 : List of Releasing Director Candidates from Non-Competition Restriction . . 75 Annex 7: Company Corporate Charter … … 76 Annex 8:Regulations for China Synthetic Rubber Corporation Director Elections . . 81 Annex 9: Directors’ Shareholding Status … … 83 Annex 10: The Impact of This Stock Grant on the Company's Operating Performance, Earnings per Share, and Shareholders' Return on Equity……….84

- 1 - Rules of Procedure for China Synthetic Rubber Corporation Shareholders Meeting Amended by regular shareholders meeting on June 24, 2014 1. The shareholders meeting of the company shall, except those stipulated in the ordinance otherwise, follow these rules. 2. The shareholders meeting should provide an attendee register for the shareholders to sign in or the attending shareholders shall hand in the sign-in cards in place of sign-in. The number of shares in attendance is calculated based on the attendee register or sign- in cards handed in and the number of shares in the voting rights submitted in writing or electronically.

3. The attendance and vote of the shareholders meeting shall be calculated on the basis of shares. 4. The place of the shareholders meeting shall be the place where the company is located or where is convenient for the shareholders to be present and suitable for the meeting of the shareholders. The meeting shall start no earlier than 9 am or later than 3 pm. 5. The shareholders meeting convened by the board of directors shall be chaired by the chairman. When the chairman is absent, the chairman designates one director as agent. If the chairman does not appoint an agent, an agent will be chosen by the directors. If the shareholders meeting is convened by a convener with calling rights other than the board of directors, the chairman is assumed by the convener of calling right. If there are two or more conveners of calling right, one person should be elected to assume the post. 6. The lawyers, accountants or related personnel appointed by the company may attend the shareholders meeting.

The meeting affair personnel handling the shareholders meeting should wear identification cards or armbands. 7. The process of the shareholders meeting should be recorded or videotaped throughout the process and kept for at least one year. 8. When the time of the meeting arrives, the chairman announces to start the meeting. However, when no shareholders representing more than half of the total number of issued shares are present, the chairman may announce a delay in the meeting. The number of delays shall be limited to twice, and the total delay time shall not exceed one hour. If the second time is still insufficient and the shareholders representing more than one-third of the total number of issued shares are not present, it may be deemed to be false resolution in accordance with the subparagraph 1 of Article 175 of the Company Act.

Before the end of the current meeting, if the number of shares represented by the shareholders attending the meeting exceeds half of the total number of issued shares, the chairman may re-submit the created false resolution to the meeting to be voted on according to Article 174 of the Company Act. 9. The agenda of shareholders meeting convened by the board of directors is set by the board of directors. The meeting shall be conducted in accordance with the scheduled agenda and may not be changed without resolution.

If the shareholders meeting is convened by a convener of calling right other than the board of directors, the provisions of the preceding subparagraph may apply. Before the agenda of the first two subparagraphs is finalized (including the provisional motion), the chairman would not be allowed to announce the adjournment without resolution. After the meeting is adjourned, the shareholders must not elect another chairman to continue the meeting at the original site or another site.

- 2 - 10. Before an attending shareholder speaks, the speech notes should be filled out with the speech gist, the shareholder number (or attendance card number) and the account name, and the chairman should set the order of his speech. Attending shareholders who present the speech notes alone but do not speak are considered as not speaking. If the content of the speech is inconsistent with the record of the speech notes, the content of the speech shall prevail. When the attending shareholders speak, other shareholders may not interfere with the speech except with the consent of the chairman and the speaking shareholders, and the chairman shall stop the violators.

11. In the same motion, each shareholder's speech may not exceed two times without the consent of the chairman and shall not exceed five minutes at a time. If the shareholder makes a speech that violates the provisions of the preceding sub- paragraph or exceeds the scope of the topic, the chairman may stop his speech. 12. When a legal person is entrusted to attend a shareholders meeting, the legal person may only appoint one person to attend as agent. When a legal person shareholder appoints more than two representatives to attend the shareholders meeting, only one person may speak for the same motion. 13. After the attending shareholder's speech, the chairman may reply in person or by designating the relevant person.

14. In the discussion of the motion, when the chairman thinks that the degree of voting has been reached, he may announce that he will stop the discussion and put it to the vote. 15. The scrutineer and the vote counting personnel for the vote on the motion shall be designated by the chairman. The scrutineers should have the status of shareholders. The results of the vote shall be reported on site and recorded. 16. In the course of the meeting, the chairman may declare a rest at a time of his discretion. 17. When the company convenes a shareholders’ meeting, it is likely to exercise the voting rights in writing or electronically. The relevant exercise methods are governed by the Company Act and the regulations of the competent authority.

The voting of the motion shall be passed with the consent of more than half of the voting rights of the shareholders present unless otherwise provided in the Company Act and the Articles of Association of the Company. In case of a vote, if no objection is raised via the chairman’s query, it is deemed as passing. The effect is the same as that of a vote. 18. When there are amendments or alternatives to the same motion, the chairman sets the voting order in conjunction with the original case. If one of the cases has been passed, other motions will be considered vetoed and no further voting will be required. 19. The chairman may command pickets (or security personnel) to help maintain order at the venue. When pickets (or security personnel) are present to help maintain order at the scene, they should wear the “picket” armbands.

20. These rules will be implemented after approval by the shareholders meeting, which applies to any amendments thereto.

3 China Synthetic Rubber Corporation 2018 Annual General Meeting Agenda Time: 9:00 a.m., Friday, June 26, 2018 Location: 3F., No.113, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City (Shimin Hall, Taiwan Cement Building) 1. Commencement of the Meeting 2. Chairman’s Statement 3. Matters to Report (1) Report on 2017 Employees' and Directors' Compensation (2) To report the Business and Financial Statements of 2017 (3) Audit Committee’s Review Report 4. Matters for Approval (1) To approve 2017 Annul Business Report and Financial Statements. (2) To approve 2017 profit Distribution Proposal 5. Matters for Discussion (1) Proposal for a new share issue through capitalization of earnings. (2)Spin-off of the domestic Carbon Black Business (including assets, liabilities and business).

(3)Spin-Off of the Biotechnology Business (including assets, liabilities and business). (4)The Company proposed to transform into an investment holding company through spin-off transactions and be renamed accordingly. (5)To amend the certain articles of the Company's "Articles of Incorporation". (6)Proposal for amendment to title of the Company’s regulations such as Rules of Procedure for Shareholders Meeting. (7)Proposal for distribution of souvenir for Annual Shareholders Meeting

4 6. Matters for Election To elect seven directors of the 17th term Board. (including three independent directors) 7. Matters for Discussion (8) Proposal to release the newly-elected Directors from non-competition. 8. Ad Hoc Motions 9. Meeting Adjourned

5 Matters to Report (1) Report on the 2017 employees’and directors’compensation of the Company. Description: 1. According to Article 28 of the Articles of Incorporation, if the Company has surplus, it shall (i) set aside 0.01%~3% for employees’ compensation; and (ii) set aside no more than 1% as directors’ compensation. 2. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors. The company distribute surplus in the amount of NT$ 8,000,000 as employees’ compensation and distributed surplus in the amount of NT$ 27,000,000 as directors’ compensation.

6 (2) 2017 Business and financial report [Business Report] The global economy entered into upward cycle in 2017. The developed-countries led the recovery, and unleashed investment, trade, and industrial production, growth and the global economic growth appeared solid and certain. However, we are still encountered challenges and uncertainties, such as environment awareness rising in emerging countries, supply-side reforming, trade protectionism for some countries, and volatility in raw material prices due to geopolitical uncertainty. Although oversupply in carbon black industry remains the same, CSRC’s financial performance in 2017 exceeded 2016 via lowing costs and improving efficiency, based on result-oriented business philosophy. We embrace change and learn passionately. Besides, CSRC will keep developing high-valued energy-storage battery product and application, developing new market with tier one customers, and implementing energy- saving production facility to enhance competitive advantages.

1. Production: The production quantity of carbon black is 490k metric ton. 2. Revenue:  Stand-alone: Sales revenue reaches NTD 4.12 billion in stand-alone audited report.  Consolidated: Sales revenue reaches NTD 20.11 billion in consolidated audited report. 3. Profit:  Stand-alone: The stand-alone net income reaches NTD 2.27 billion, YoY grows 55%, over annual budget 133%.  Consolidated: The consolidated net income reaches NTD 2.34 billion, YoY grows 63%, over annual budget 141%. Chairman: Chang, An-Ping President: Po Sung Huang Accounting Supervisor: Lin, Kuei-Yu

7 Financial statement 會 計 師 查 核 報 告 中 國 合 成 橡 膠 股 份 有 限 公 司 公 鑒 : 查 核 意 見 中 國 合 成 橡 膠 股 份 有 限 公 司 民 國 106 年 及 105 年 12 月 31 日 之 個 體 資 產 負 債 表 , 暨 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 之 個 體 綜 合 損 益 表 、 個 體 權 益 變 動 表、個 體 現 金 流 量 表,以 及 個 體 財 務 報 表 附 註( 包 括 重 大 會 計 政 策 彙 總 ) , 業 經 本 會 計 師 查 核 竣 事 。 依 本 會 計 師 之 意 見 , 基 於 本 會 計 師 之 查 核 結 果 及 其 他 會 計 師 之 查 核 報 告 ( 請 參 閱 其 他 事 項 段 ) ,上 開 個 體 財 務 報 表 在 所 有 重 大 方 面 係 依 照 證 券 發 行 人 財 務 報 告 編 製 準 則 編 製,足 以 允 當 表 達 中 國 合 成 橡 膠 股 份 有 限 公 司 民 國 106 年 及 105 年 12 月 31 日 之 個 體 財 務 狀 況 , 暨 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 之 個 體 財 務 績 效 及 個 體 現 金 流 量 。 查 核 意 見 之 基 礎 本 會 計 師 係 依 照 會 計 師 查 核 簽 證 財 務 報 表 規 則 及 一 般 公 認 審 計 準 則 執 行 查 核 工 作 。 本 會 計 師 於 該 等 準 則 下 之 責 任 將 於 會 計 師 查 核 個 體 財 務 報 表 之 責 任 段 進 一 步 說 明 。 本 會 計 師 所 隸 屬 事 務 所 受 獨 立 性 規 範 之 人 員 已 依 會 計 師 職 業 道 德 規 範,與 中 國 合 成 橡 膠 股 份 有 限 公 司 保 持 超 然 獨 立,並 履 行 該 規 範 之 其 他 責 任。本 會 計 師 相 信 已 取 得 足 夠 及 適 切 之 查 核 證 據,以 作 為 表 示 查 核 意 見 之 基 礎 。

8 關 鍵 查 核 事 項 關 鍵 查 核 事 項 係 指 依 本 會 計 師 之 專 業 判 斷 , 對 中 國 合 成 橡 膠 股 份 有 限 公 司 民 國 106 年 度 個 體 財 務 報 表 之 查 核 最 為 重 要 之 事 項 。 該 等 事 項 已 於 查 核 個 體 財 務 報 表 整 體 及 形 成 查 核 意 見 之 過 程 中 予 以 因 應 , 本 會 計 師 並 不 對 該 等 事 項 單 獨 表 示 意 見 。 茲 對 中 國 合 成 橡 膠 股 份 有 限 公 司 民 國 106 年 度 個 體 財 務 報 表 之 關 鍵 查 核 事 項 敘 明 如 下 : 採 權 益 法 之 投 資 其 不 動 產 、 廠 房 及 設 備 減 損 評 估 截 至 民 國 106 年 12 月 31 日 止 , 中 國 合 成 橡 膠 股 份 有 限 公 司 採 權 益 法 投 資 之 金 額 為 10,721,045 仟 元 , 佔 資 產 總 額 49%。 採 權 益 法 投 資 之 部 分 子 公 司 尚 有 累 積 虧 損,因 是 其 不 動 產、廠 房 及 設 備 應 予 評估 是 否具 有資 產 減損 之 可能。 不 動 產、廠 房 及 設 備 減 損 係 按 該 等 設 備 之 可 回 收 金 額( 即 該 等 資 產 之 公 允 價 值 減 出 售 成 本 與 其 使 用 價 值 之 較 高 者 )評 估,市 場 價 格 或 未 來 現 金 流 量 變 動 將 影 響 該 等 資 產 可 回 收 金 額 。 公 司 管 理 階 層 估 計 該 資 產 所 屬 現 金 產 生 單 位 之 可 回 收 金 額,因 涉 及 許 多 之 假 設 及 估 計,其 估 計 之 方 法將 影 響資 產減 損 結果 之 判斷, 可 能 影 響 中 國 合 成 橡 膠 股 份 有 限 公 司 認 列 採 權 益 法 認 列 之 子 公 司 損 益 份 額 , 是 以 列 為 關 鍵 查 核 事 項 。 與 不 動 產、廠 房 及 設 備 減 損 評 估 相 關 會 計 政 策、會 計 估 計 及 假 設 之 不 確 定 性 估 計 暨 攸 關 揭 露 資 訊 , 請 參 閱 個 體 財 務 報 表 附 註 四 、 五 及 十 二 。 本 會 計 師 因 應 上 述 關 鍵 查 核 事 項 所 執 行 之 查 核 程 序 包 括 瞭 解 管 理 階 層 執 行 資 產 減 損 之 過 程 及 依 據 , 評 估 管 理 階 層 辨 識 減 損 跡 象 之 合 理 性 及 預 期 未 來 現 金 流 量 之 適 切 性 , 另 委 請 本 事 務 所 財 務 顧 問 專 家 協 助 評 估 管 理 階 層 依 使 用 價 值 模 式 計 算 可 回 收 金 額 之 加 權 平 均 資 金 成 本 率 是 否 適 當 , 並 重 新 執 行 與 驗 算 。 其 他 事 項 列 入 上 開 個 體 財 務 報 表 之 採 用 權 益 法 之 投 資 子 公 司 中,民 國 106 年 及 105 年 12 月 31 日 之 CCC USA Corp.及 其 子 公 司 係 由 其 他 會 計 師 查 核 , 因 此 本 會 計 師 對 上 開 財 務 報 表 所 表 示 之 查 核 結 果 中 , 該 等 公 司 財 務 報 表 所 列 示 之 金 額 係 依 據 其 他 會 計 師 之 查 核 報 告 認 列 。 民 國 106 年 及 105 年 12 月 31 日 該 等 採 用 權 益 法 之 投 資 合 計 金 額 分 別 為 新 台 幣 1,294,443 仟 元 及 1,346,618 仟 元 , 占 各 該 年 底 資 產 總 額 分 別 為 6%及 7%; 民 國 106 及 105 年 度 認 列 之 投 資 利 益 分 別 為 新 台 幣 55,267 仟 元 及 81,467 仟 元,分 別 占 各 該 年 度 稅 前 淨 利 之 2%及 4% 。

9 管 理 階 層 與 治 理 單 位 對 個 體 財 務 報 表 之 責 任 管 理 階 層 之 責 任 係 依 照 證 券 發 行 人 財 務 報 告 編 製 準 則 編 製 允 當 表 達 之 個 體 財 務 報 表,且 維 持 與 個 體 財 務 報 表 編 製 有 關 之 必 要 內 部 控 制,以 確 保 個 體 財 務 報 表 未 存 有 導 因 於 舞 弊 或 錯 誤 之 重 大 不 實 表 達 。 於 編 製 個 體 財 務 報 表 時 , 管 理 階 層 之 責 任 亦 包 括 評 估 中 國 合 成 橡 膠 股 份 有 限 公 司 繼 續 經 營 之 能 力、相 關 事 項 之 揭 露,以 及 繼 續 經 營 會 計 基 礎 之 採 用, 除 非 管 理 階 層 意 圖 清 算 中 國 合 成 橡 膠 股 份 有 限 公 司 或 停 止 營 業 , 或 除 清 算 或 停 業 外 別 無 實 際 可 行 之 其 他 方 案 。 中 國 合 成 橡 膠 股 份 有 限 公 司 之 治 理 單 位( 含 審 計 委 員 會 )負 有 監 督 財 務 報 導 流 程 之 責 任 。 會 計 師 查 核 個 體 財 務 報 表 之 責 任 本 會 計 師 查 核 個 體 財 務 報 表 之 目 的 , 係 對 個 體 財 務 報 表 整 體 是 否 存 有 導 因 於 舞 弊 或 錯 誤 之 重 大 不 實 表 達 取 得 合 理 確 信,並 出 具 查 核 報 告。合 理 確 信 係 高 度 確 信 , 惟 依 照 一 般 公 認 審 計 準 則 執 行 之 查 核 工 作 無 法 保 證 必 能 偵 出 個 體 財 務 報 表 存 有 之 重 大 不 實 表 達。不 實 表 達 可 能 導 因 於 舞 弊 或 錯 誤。如 不 實 表 達 之 個 別 金 額 或 彙 總 數 可 合 理 預 期 將 影 響 個 體 財 務 報 表 使 用 者 所 作 之 經 濟 決 策 , 則 被 認 為 具 有 重 大 性 。 本 會 計 師 依 照 一 般 公 認 審 計 準 則 查 核 時 , 運 用 專 業 判 斷 並 保 持 專 業 上 之 懷 疑 。 本 會 計 師 亦 執 行 下 列 工 作 : 1. 辨 認 並 評 估 個 體 財 務 報 表 導 因 於 舞 弊 或 錯 誤 之 重 大 不 實 表 達 風 險 ; 對 所 評 估 之 風 險 設 計 及 執 行 適 當 之 因 應 對 策 ; 並 取 得 足 夠 及 適 切 之 查 核 證 據 以 作 為 查 核 意 見 之 基 礎。因 舞 弊 可 能 涉 及 共 謀、偽 造、故 意 遺 漏、不 實 聲 明 或 踰 越 內 部 控 制 , 故 未 偵 出 導 因 於 舞 弊 之 重 大 不 實 表 達 之 風 險 高 於 導 因 於 錯 誤 者 。 2. 對 與 查 核 攸 關 之 內 部 控 制 取 得 必 要 之 瞭 解 , 以 設 計 當 時 情 況 下 適 當 之 查 核 程 序 , 惟 其 目 的 非 對 中 國 合 成 橡 膠 股 份 有 限 公 司 內 部 控 制 之 有 效 性 表 示 意 見 。 3. 評 估 管 理 階 層 所 採 用 會 計 政 策 之 適 當 性 , 及 其 所 作 會 計 估 計 與 相 關 揭 露 之 合 理 性 。 4. 依 據 所 取 得 之 查 核 證 據,對 管 理 階 層 採 用 繼 續 經 營 會 計 基 礎 之 適 當 性,以 及 使 中 國 合 成 橡 膠 股 份 有 限 公 司 繼 續 經 營 之 能 力 可 能 產 生 重 大 疑 慮 之 事 件 或 情 況 是 否 存 在 重 大 不 確 定 性,作 出 結 論。本 會 計 師 若 認 為 該 等 事 件 或

10 情 況 存 在 重 大 不 確 定 性 , 則 須 於 查 核 報 告 中 提 醒 個 體 財 務 報 表 使 用 者 注 意 個 體 財 務 報 表 之 相 關 揭 露,或 於 該 等 揭 露 係 屬 不 適 當 時 修 正 查 核 意 見。 本 會 計 師 之 結 論 係 以 截 至 查 核 報 告 日 所 取 得 之 查 核 證 據 為 基 礎 。 惟 未 來 事 件 或 情 況 可 能 導 致 中 國 合 成 橡 膠 股 份 有 限 公 司 不 再 具 有 繼 續 經 營 之 能 力 。 5. 評 估 個 體 財 務 報 表( 包 括 相 關 附 註 )之 整 體 表 達、結 構 及 內 容,以 及 個 體 財 務 報 表 是 否 允 當 表 達 相 關 交 易 及 事 件 。 6. 對 於 中 國 合 成 橡 膠 股 份 有 限 公 司 內 組 成 個 體 之 財 務 資 訊 取 得 足 夠 及 適 切 之 查 核 證 據,以 對 個 體 財 務 報 表 表 示 意 見。本 會 計師 負 責查 核案 件 之指 導、 監 督 及 執 行 , 並 負 責 形 成 中 國 合 成 橡 膠 股 份 有 限 公 司 查 核 意 見 。 本 會 計 師 與 治 理 單 位 溝 通 之 事 項,包 括 所 規 劃 之 查 核 範 圍 及 時 間,以 及 重 大 查 核 發 現 ( 包 括 於 查 核 過 程 中 所 辨 認 之 內 部 控 制 顯 著 缺 失 ) 。 本 會 計 師 亦 向 治 理 單 位 提 供 本 會 計 師 所 隸 屬 事 務 所 受 獨 立 性 規 範 之 人 員 已 遵 循 會 計 師 職 業 道 德 規 範 中 有 關 獨 立 性 之 聲 明 , 並 與 治 理 單 位 溝 通 所 有 可 能 被 認 為 會 影 響 會 計 師 獨 立 性 之 關 係 及 其 他 事 項 ( 包 括 相 關 防 護 措 施 ) 。 本 會 計 師 從 與 治 理 單 位 溝 通 之 事 項 中 , 決 定 對 中 國 合 成 橡 膠 股 份 有 限 公 司 民 國 106 年 度 個 體 財 務 報 表 查 核 之 關 鍵 查 核 事 項 。 本 會 計 師 於 查 核 報 告 中 敘 明 該 等 事 項,除 非 法 令 不 允 許 公 開 揭 露 特 定 事 項,或 在 極 罕 見 情 況 下,本 會 計 師 決 定 不 於 查 核 報 告 中 溝 通 特 定 事 項 , 因 可 合 理 預 期 此 溝 通 所 產 生 之 負 面 影 響 大 於 所 增 進 之 公 眾 利 益 。

11 中 國 合 成 橡 膠 股 份 有 限 公 司 個 體 資 產 負 債 表 民 國 106 年 及 105 年 12 月 31 日 單 位 : 新 台 幣 仟 元 106年12月31日 105年12月31日 代 碼 資 產 金 額 % 金 額 % 流動資產 1100 現金及約當現金(附註四及六) $ 3,374,173 16 $ 1,932,231 9 1110 透過損益按公允價值衡量之金融資產-流動(附註四及七) 936,776 4 1,234,316 6 1125 備供出售金融資產-流動(附註四及八) 1,499,284 7 1,399,332 7 1170 應收帳款-淨額(附註四及十) 262,760 1 197,540 1 1180 應收帳款-關係人(附註四、十及二七) 397,958 2 359,587 2 130X 存貨(附註四及十一) 159,397 1 251,275 1 1476 其他金融資產-流動(附註二七及二八) 50,092 - 121,688 1 1479 其他流動資產 4,344 - 1,994 - 11XX 流動資產總計 6,684,784 31 5,497,963 27 非流動資產 1523 備供出售金融資產-非流動(附註四及八) 3,210,996 15 3,092,551 16 1543 以成本衡量之金融資產-非流動(附註四及九) 260,748 1 262,131 1 1550 採用權益法之投資(附註四、五及十二) 10,721,045 49 10,249,963 51 1600 不動產、廠房及設備(附註四及十三) 784,281 4 821,060 4 1760 投資性不動產(附註四及十四 - 167,158 1 1840 遞延所得稅資產(附註四及二一) 15,211 - 14,242 - 1915 預付設備款 - - 10,981 - 1980 其他金融資產-非流動 2,562 - 2,506 - 1990 其他非流動資產 1,775 - 2,642 - 15XX 非流動資產總計 14,996,618 69 14,623,234 73 1XXX 資 產 總 計 $ 21,681,402 100 $ 20,121,197 100 代 碼 負 債 及 權 益 流動負債 2100 短期借款(附註十五 $ 43,255 - 2170 應付帳款(附註十六) 122,720 1 92,485 - 2180 應付帳款-關係人(附註二七) 93,522 - 83,644 - 2219 其他應付款(附註十七及二七) 689,666 3 385,144 2 2230 本期所得稅負債(附註四及二一) 30,331 - 106,600 1 2399 其他流動負債 4,274 - 973 - 21XX 流動負債總計 940,513 4 712,101 3 非流動負債 2550 負債準備-非流動(附註四及十八) 10,213 - 4,204 - 2570 遞延所得稅負債(附註四及二一) 1,059,135 5 836,543 4 2640 淨確定福利負債(附註四及十八) 8,476 - 26,003 - 2670 其他非流動負債 80,518 1 78,460 1 25XX 非流動負債總計 1,158,342 6 945,210 5 2XXX 負債總計 2,098,855 10 1,657,311 8 權 益(附註四及十九) 3110 普 通 股 6,285,870 29 5,986,543 30 3200 資本公積 3,713,759 17 3,694,767 18 保留盈餘 3310 法定盈餘公積 2,064,398 9 1,917,297 9 3320 特別盈餘公積 645,316 3 648,929 3 3350 未分配盈餘 4,256,084 20 3,329,086 17 3300 保留盈餘總計 6,965,798 32 5,895,312 29 3400 其他權益 2,907,208 13 3,177,352 16 3500 庫藏股票 ( 290,088 ) ( 1 ) ( 290,088 ) ( 1 ) 3XXX 權益總計 19,582,547 90 18,463,886 92 負 債 與 權 益 總 計 $ 21,681,402 100 $ 20,121,197 100 後 附 之 附 註 係 本 個 體 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

12 中 國 合 成 橡 膠 股 份 有 限 公 司 個 體 綜 合 損 益 表 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 單 位 : 新 台 幣 仟 元 , 惟 每 股 盈 餘 為 元 106年度 105年度 代 碼 金 額 % 金 額 % 4000 營業收入淨額(附註四及二 七) $ 4,123,195 100 $ 3,600,130 100 5000 營業成本(附註四、十一、 十八、二十及二七) 2,519,053 61 2,112,804 59 5900 營業毛利 1,604,142 39 1,487,326 41 5910 與子公司之未實現(利益) 損失 ( 219) - 192 - 5920 與子公司之已實現損失 ( 192 ( 391) - 5950 已實現營業毛利 1,603,731 39 1,487,127 41 營業費用(附註十八、二十 及二七) 6100 推銷費用 76,050 2 72,106 2 6200 管理費用 184,119 5 95,074 2 6300 研究發展費用 304,497 7 59,844 2 6000 營業費用合計 564,666 14 227,024 6 6900 營業淨利 1,039,065 25 1,260,103 35 營業外收入及支出(附註 四、二十及二七) 7010 其他收入 273,232 7 290,394 8 7020 其他利益及損失 ( 98,072) ( 2) ( 100,085) ( 3) 7050 財務成本 ( 1,263 ( 1,452) - 7070 採用權益法認列之子公 司利益份額 1,539,150 37 418,315 12 7000 營業外收入及支出 合計 1,713,047 42 607,172 17 ( 接 次 頁 )

13 ( 承 前 頁 ) 106年度 105年度 代 碼 金 額 % 金 額 % 7900 本年度稅前淨利 $ 2,752,112 67 $ 1,867,275 52 7950 所得稅費用(附註四及二 一) ( 478,684) ( 12) ( 396,265) ( 11) 8200 本年度淨利 2,273,428 55 1,471,010 41 其他綜合損益(附註四及十 八) 8310 不重分類至損益之項目 8311 確定福利計畫之再 衡量數 ( 4,527) - 1,181 - 8330 採用權益法之子公 司之其他綜合損 益份額 ( 1,034 ( 2,487) - 8360 後續可能重分類至損益 之項目 8361 國外營運機構財務 報表換算之兌換 差額 ( 505,408) ( 12) ( 173,675) ( 5) 8362 備供出售金融資產 未實現評價損益 218,397 5 815,235 23 8380 採用權益法之子公 司之其他綜合損 益份額 16,867 - 142,734 4 8300 其他綜合損益 ( 275,705) ( 7) 782,988 22 8500 本年度綜合損益總額 $ 1,997,723 48 $ 2,253,998 63 每股盈餘(附註二二) 來自繼續營業單位 9750 基 本 $ 3.69 $ 2.39 9850 稀 釋 $ 3.69 $ 2.39 後 附 之 附 註 係 本 個 體 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

14 中 國 合 成 橡 膠 股 份 有 限 公 司 個 體 權 益 變 動 表 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 單 位 : 新 台 幣 仟 元 , 惟 每 股 股 利 為 元 其 他 權 益 項 目 ( 附 註 四 ) 國 外 營 運 機 構 備 供 出 售 資 本 公 積 保 留 盈 餘 ( 附 註 十 九 ) 財 務 報 表 換 算 金 融 資 產 庫 藏 股 票 代 碼 股 數 ( 仟 股 ) 金 額 ( 附 註 四 ) 法 定 盈 餘 公 積 特 別 盈 餘 公 積 未 分 配 盈 餘 之 兌 換 差 額 未 實 現 損 益 (附註四及十九) 權 益 總 額 A1 105 年 1 月 1 日餘額 598,654 $ 5,986,543 $ 3,792,857 $ 1,832,233 $ 648,929 $ 2,659,586 $ 375,800 $ 2,017,258 ( $ 290,088 ) $ 17,023,118 104 年度盈餘指撥及分配 B1 提列法定盈餘公積 - 85,064 - ( 85,064 - B5 股東紅利-現金,每股 1.15 元 ( 688,452 ( 688,452 ) 分配後餘額 598,654 5,986,543 3,792,857 1,917,297 648,929 1,886,070 375,800 2,017,258 ( 290,088 ) 16,334,666 M1 發放予子公司股利調整資本公積 - - 12,983 - 12,983 M5 實際取得子公司部分權益 ( 111,073 ( 26,688 ( 137,761 ) D1 105 年度淨利 - 1,471,010 - 1,471,010 D3 105 年度其他綜合損益 ( 1,306 ) ( 173,675 ) 957,969 - 782,988 D5 105 年度綜合損益總額 - 1,469,704 ( 173,675 ) 957,969 - 2,253,998 Z1 105 年 12 月 31 日餘額 598,654 5,986,543 3,694,767 1,917,297 648,929 3,329,086 202,125 2,975,227 ( 290,088 ) 18,463,886 105 年度盈餘指撥及分配 B1 提列法定盈餘公積 - 147,101 - ( 147,101 - B5 股東紅利-現金,每股 1.5 元 ( 897,981 ( 897,981 ) B9 股東紅利-股票,每股 0.5 元 29,933 299,327 ( 299,327 - 分配後餘額 628,587 6,285,870 3,694,767 2,064,398 648,929 1,984,677 202,125 2,975,227 ( 290,088 ) 17,565,905 M1 發放予子公司股利調整資本公積 - - 16,934 - 16,934 M5 處分子公司股權價格與帳面價值差額 - - 2,058 - 2,058 M7 對子公司所有權權益變動 ( 73 ( 73 ) B17 特別盈餘公積迴轉 ( 3,613 ) 3,613 - D1 106 年度淨利 - 2,273,428 - 2,273,428 D3 106 年度其他綜合損益 ( 5,561 ) ( 505,408 ) 235,264 - ( 275,705 ) D5 106 年度綜合損益總額 - 2,267,867 ( 505,408 ) 235,264 - 1,997,723 Z1 106 年 12 月 31 日餘額 628,587 $ 6,285,870 $ 3,713,759 $ 2,064,398 $ 645,316 $ 4,256,084 ( $ 303,283 ) $ 3,210,491 ( $ 290,088 ) $ 19,582,547 後 附 之 附 註 係 本 個 體 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

15 中 國 合 成 橡 膠 股 份 有 限 公 司 個 體 現 金 流 量 表 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 單 位 : 新 台 幣 仟 元 代 碼 106年度 105年度 營業活動之現金流量 A10000 本年度稅前淨利 $ 2,752,112 $ 1,867,275 A20010 收益費損項目 A20100 折舊費用 80,316 81,140 A20200 攤銷費用 675 1,618 A20400 透過損益按公允價值衡量之金 融資產利益 ( 2,460) ( 2,784 ) A20900 利息費用 812 1,093 A21200 利息收入 ( 10,231) ( 7,841 ) A21300 股利收入 ( 201,408) ( 209,467 ) A22400 採用權益法認列之子公司利益 份額 ( 1,539,150) ( 418,315 ) A22500 不動產、廠房及設備報廢損失 7 8,191 A22700 處分投資性不動產利益 ( 270,125) - A23100 處分投資利益 ( 772) ( 616 ) A23500 金融資產減損損失 1,383 - A23700 非金融資產減損損失(回升利 益) 110,916 ( 24,599 ) A23900 與子公司之未實現利益(損 失) 219 ( 192 ) A24000 與子公司之已實現損失 192 391 A24100 未實現外幣兌換損失(利益) 15,260 ( 3,717 ) A29900 處分子公司利益 ( 7,637) - A30000 與營業活動相關之資產/負債變動 數 A31110 持有供交易之金融資產 300,772 ( 569,384 ) A31150 應收帳款 ( 67,152) 95,387 A31160 應收帳款-關係人 ( 48,114) ( 33,529 ) A31200 存 貨 91,878 4,119 A31240 其他流動資產 ( 2,350) 740 A31250 其他金融資產-流動 68,662 ( 19,207 ) A32150 應付帳款 30,239 12,383 A32160 應付帳款-關係人 9,890 ( 12,228 ) A32180 其他應付款 304,716 116,917 A32200 負債準備 1,097 ( 163 ) ( 接 次 頁 )

16 ( 承 前 頁 ) 代 碼 106年度 105年度 A32230 其他流動負債 $ 3,301 ($ 512 ) A32240 淨確定福利負債 ( 22,054) ( 11,037 ) A33000 營運產生之現金流入 1,600,994 875,663 A33100 收取之利息 9,786 7,655 A33500 支付之所得稅 ( 333,330) ( 306,453 ) AAAA 營業活動之淨現金流入 1,277,450 576,865 投資活動之現金流量 B02200 取得子公司之淨現金流出 ( 195,143) ( 2,345,213 ) B01900 處分子公司之淨現金流入 180,233 - B02700 取得不動產、廠房及設備 ( 38,828) ( 53,513 ) B05500 處分投資性不動產 437,006 - B06600 其他金融資產-非流動減少 ( 56) ( 1,138 ) B07100 預付設備款減少(增加) 10,981 ( 3,781 ) B07600 收取之股利 710,198 942,142 BBBB 投資活動之淨現金流入(流 出) 1,104,391 ( 1,461,503 ) 籌資活動之現金流量 C00100 短期借款減少 ( 43,477) ( 15,764 ) C04400 其他非流動負債增加 2,058 4,505 C04500 發放現金股利 ( 897,981) ( 688,452 ) C05600 支付之利息 ( 499) ( 682 ) CCCC 籌資活動之淨現金流出 ( 939,899) ( 700,393 ) EEEE 本年度現金及約當現金增加(減少)數 1,441,942 ( 1,585,031 ) E00100 年初現金及約當現金餘額 1,932,231 3,517,262 E00200 年底現金及約當現金餘額 $ 3,374,173 $ 1,932,231 後 附 之 附 註 係 本 個 體 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

17 會 計 師 查 核 報 告 中 國 合 成 橡 膠 股 份 有 限 公 司 公 鑒 : 查 核 意 見 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 民 國 106 年 及 105 年 12 月 31 日 之 合 併 資 產 負 債 表 , 暨 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 之 合 併 綜 合 損 益 表、合 併 權 益 變 動 表、合 併 現 金 流 量 表,以 及 合 併 財 務 報 表 附 註( 包 括 重 大 會 計 政 策 彙 總 ) , 業 經 本 會 計 師 查 核 竣 事 。 依 本 會 計 師 之 意 見 , 基 於 本 會 計 師 之 查 核 結 果 及 其 他 會 計 師 之 查 核 報 告 ( 請 參 閱 其 他 事 項 段 ) ,上 開 合 併 財 務 報 表 在 所 有 重 大 方 面 係 依 照 證 券 發 行 人 財 務 報 告 編 製 準 則 及 經 金 融 監 督 管 理 委 員 會 認 可 並 發 布 生 效 之 國 際 財 務 報 導 準 則、國 際 會 計 準 則、解 釋 及 解 釋 公 告 編 製,足 以 允 當 表 達 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 民 國 106 年 及 105 年 12 月 31 日 之 合 併 財 務 狀 況 , 暨 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 之 合 併 財 務 績 效 及 合 併 現 金 流 量 。 查 核 意 見 之 基 礎 本 會 計 師 係 依 照 會 計 師 查 核 簽 證 財 務 報 表 規 則 及 一 般 公 認 審 計 準 則 執 行 查 核 工 作 。 本 會 計 師 於 該 等 準 則 下 之 責 任 將 於 會 計 師 查 核 合 併 財 務 報 表 之 責 任 段 進 一 步 說 明 。 本 會 計 師 所 隸 屬 事 務 所 受 獨 立 性 規 範 之 人 員 已 依 會 計 師 職 業 道 德 規 範,與 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 保 持 超 然 獨 立,並 履 行 該 規 範 之 其 他 責 任。本 會 計 師 相 信 已 取 得 足 夠 及 適 切 之 查 核 證 據,以 作 為 表 示 查 核 意 見 之 基 礎 。 關 鍵 查 核 事 項

18 關 鍵 查 核 事 項 係 指 依 本 會 計 師 之 專 業 判 斷 , 對 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 民 國 106 年 度 合 併 財 務 報 表 之 查 核 最 為 重 要 之 事 項 。 該 等 事 項 已 於 查 核 合 併 財 務 報 表 整 體 及 形 成 查 核 意 見 之 過 程 中 予 以 因 應 , 本 會 計 師 並 不 對 該 等 事 項 單 獨 表 示 意 見 。 茲 對 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 民 國 106 年 度 合 併 財 務 報 表 之 關 鍵 查 核 事 項 敘 明 如 下 : 不 動 產 、 廠 房 及 設 備 減 損 評 估 截 至 民 國 106 年 12 月 31 日 止 , 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 不 動 產 、 廠 房 及 設 備 之 金 額 為 11,790,860 仟 元 , 佔 合 併 資 產 總 額 32%。 中 國 合 成 橡 膠 股 份 有 限 公 司 之 部 分 子 公 司 尚 有 累 積 虧 損,因 是 其 不 動 產、廠 房 及 設 備 應 予 評 估 是 否 具 有 資 產 減 損 之 可 能。不 動 產、廠 房 及 設 備 減 損 係 按 該 等 設 備 之 可 回 收 金 額( 即 該 等 資 產 之 公 允 價 值 減 出 售 成 本 與 其 使用 價值 之 較高 者 )評 估, 市 場 價 格 或 未 來 現 金 流 量 變 動 將 影 響 該 等 資 產 可 回 收 金 額 。 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 估 計 該 資 產 所 屬 現 金 產 生 單 位 之 可 回 收 金 額 , 因 涉 及 許 多 之 假 設 及 估 計,其 估 計 之 方 法 將 影 響 資 產 減 損 結 果 之 判 斷,是 以 列 為 關 鍵 查 核 事 項 。 與 不 動 產、廠 房 及 設 備 減 損 評 估 相 關 會 計 政 策、會 計 估 計 及 假 設 之 不 確 定 性 估 計 暨 攸 關 揭 露 資 訊 , 請 參 閱 合 併 財 務 報 表 附 註 四 、 五 、 十 二 及 二 三 。 本 會 計 師 因 應 上 述 關 鍵 查 核 事 項 所 執 行 之 查 核 程 序 包 括 瞭 解 管 理 階 層 執 行 資 產 減 損 之 過 程 及 依 據 , 評 估 管 理 階 層 辨 識 減 損 跡 象 之 合 理 性 及 預 期 未 來 現 金 流 量 之 適 切 性 , 另 委 請 本 事 務 所 財 務 顧 問 專 家 協 助 評 估 管 理 階 層 依 使 用 價 值 模 式 計 算 可 回 收 金 額 之 加 權 平 均 資 金 成 本 率 是 否 適 當 , 並 重 新 執 行 與 驗 算 。 其 他 事 項 列 入 上 開 合 併 財 務 報 表 之 子 公 司 中 , 民 國 106 年 及 105 年 12 月 31 日 之 CCC USA Corp.及 其 子 公 司 之 合 併 財 務 報 表 係 由 其 他 會 計 師 查 核 , 因 此 本 會 計 師 對 上 開 合 併 財 務 報 表 所 表 示 之 意 見 中 , 該 等 公 司 財 務 報 表 所 列 示 之 金 額 係 依 據 其 他 會 計 師 之 查 核 報 告 認 列 。 該 等 公 司 民 國 106 年 及 105 年 12 月 31 日 之 資 產 總 額 分 別 為 新 台 幣 8,671,677 仟 元 及 5,585,904 仟 元 , 佔 合 併 資 產 總 額 分 別 為 24%及 18%; 民 國 106 及 105 年 度 之 營 業 收 入 淨 額 分 別 為 新 台 幣 5,357,310 仟 元 及 4,200,064 仟 元 , 佔 合 併 營 業 收 入 淨 額 分 別 為 27%及 26%。

19 中 國 合 成 橡 膠 股 份 有 限 公 司 業 已 編 製 民 國 106 及 105 年 度 之 個 體 財 務 報 表 , 並 經 本 會 計 師 皆 出 具 無 保 留 意 見 之 查 核 報 告 在 案 , 備 供 參 考 。 管 理 階 層 與 治 理 單 位 對 合 併 財 務 報 表 之 責 任 管 理 階 層 之 責 任 係 依 照 證 券 發 行 人 財 務 報 告 編 製 準 則 及 經 金 融 監 督 管 理 委 員 會 認 可 並 發 布 生 效 之 國 際 財 務 報 導 準 則、國 際 會 計 準 則、解 釋 及 解 釋 公 告 編 製 允 當 表 達 之 合 併 財 務 報 表 , 且 維 持 與 合 併 財 務 報 表 編 製 有 關 之 必 要 內 部 控 制 , 以 確 保 合 併 財 務 報 表 未 存 有 導 因 於 舞 弊 或 錯 誤 之 重 大 不 實 表 達 。 於 編 製 合 併 財 務 報 表 時 , 管 理 階 層 之 責 任 亦 包 括 評 估 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 繼 續 經 營 之 能 力、相 關 事 項 之 揭 露,以 及 繼 續 經 營 會 計 基 礎 之 採 用 , 除 非 管 理 階 層 意 圖 清 算 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 或 停 止 營 業 , 或 除 清 算 或 停 業 外 別 無 實 際 可 行 之 其 他 方 案 。 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 之 治 理 單 位( 含 審 計 委 員 會 )負 有 監 督 財 務 報 導 流 程 之 責 任 。 會 計 師 查 核 合 併 財 務 報 表 之 責 任 本 會 計 師 查 核 合 併 財 務 報 表 之 目 的 , 係 對 合 併 財 務 報 表 整 體 是 否 存 有 導 因 於 舞 弊 或 錯 誤 之 重 大 不 實 表 達 取 得 合 理 確 信,並 出 具 查 核 報 告。合 理 確 信 係 高 度 確 信 , 惟 依 照 一 般 公 認 審 計 準 則 執 行 之 查 核 工 作 無 法 保 證 必 能 偵 出 合 併 財 務 報 表 存 有 之 重 大 不 實 表 達。不 實 表 達 可 能 導 因 於 舞 弊 或 錯 誤。如 不 實 表 達 之 個 別 金 額 或 彙 總 數 可 合 理 預 期 將 影 響 合 併 財 務 報 表 使 用 者 所 作 之 經 濟 決 策 , 則 被 認 為 具 有 重 大 性 。 本 會 計 師 依 照 一 般 公 認 審 計 準 則 查 核 時 , 運 用 專 業 判 斷 並 保 持 專 業 上 之 懷 疑 。 本 會 計 師 亦 執 行 下 列 工 作 : 1. 辨 認 並 評 估 合 併 財 務 報 表 導 因 於 舞 弊 或 錯 誤 之 重 大 不 實 表 達 風 險 ; 對 所 評 估 之 風 險 設 計 及 執 行 適 當 之 因 應 對 策 ; 並 取 得 足 夠 及 適 切 之 查 核 證 據 以 作 為 查 核 意 見 之 基 礎。因 舞 弊 可 能 涉 及 共 謀、偽 造、故 意 遺 漏、不 實 聲 明 或 踰 越 內 部 控 制 , 故 未 偵 出 導 因 於 舞 弊 之 重 大 不 實 表 達 之 風 險 高 於 導 因 於 錯 誤 者 。 2. 對 與 查 核 攸 關 之 內 部 控 制 取 得 必 要 之 瞭 解 , 以 設 計 當 時 情 況 下 適 當 之 查 核 程 序 , 惟 其 目 的 非 對 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 內 部 控 制 之 有 效 性 表 示 意 見 。

20 3. 評 估 管 理 階 層 所 採 用 會 計 政 策 之 適 當 性 , 及 其 所 作 會 計 估 計 與 相 關 揭 露 之 合 理 性 。 4. 依 據 所 取 得 之 查 核 證 據,對 管 理 階 層 採 用 繼 續 經 營 會 計 基 礎 之 適 當 性 , 以 及 使 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 繼 續 經 營 之 能 力 可 能 產 生 重 大 疑 慮 之 事 件 或 情 況 是 否 存 在 重 大 不 確 定 性,作 出 結 論。本 會 計 師 若 認 為 該 等 事 件 或 情 況 存 在 重 大 不 確 定 性 , 則 須 於 查 核 報 告 中 提 醒 合 併 財 務 報 表 使 用 者 注 意 合 併 財 務 報 表 之 相 關 揭 露 , 或 於 該 等 揭 露 係 屬 不 適 當 時 修 正 查 核 意 見 。 本 會 計 師 之 結 論 係 以 截 至 查 核 報 告 日 所 取 得 之 查 核 證 據 為 基 礎 。 惟 未 來 事 件 或 情 況 可 能 導 致 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 不 再 具 有 繼 續 經 營 之 能 力 。 5. 評 估 合 併 財 務 報 表( 包 括 相 關 附 註 )之 整 體 表 達、結 構 及 內 容,以 及 合 併 財 務 報 表 是 否 允 當 表 達 相 關 交 易 及 事 件 。 6. 對 於 集 團 內 組 成 個 體 之 財 務 資 訊 取 得 足 夠 及 適 切 之 查 核 證 據 , 以 對 合 併 財 務 報 表 表 示 意 見。本 會 計 師 負 責 集 團 查 核 案 件 之 指 導、監 督 及 執 行,並 負 責 形 成 集 團 查 核 意 見 。 本 會 計 師 與 治 理 單 位 溝 通 之 事 項,包 括 所 規 劃 之 查 核 範 圍 及 時 間,以 及 重 大 查 核 發 現 ( 包 括 於 查 核 過 程 中 所 辨 認 之 內 部 控 制 顯 著 缺 失 ) 。 本 會 計 師 亦 向 治 理 單 位 提 供 本 會 計 師 所 隸 屬 事 務 所 受 獨 立 性 規 範 之 人 員 已 遵 循 會 計 師 職 業 道 德 規 範 中 有 關 獨 立 性 之 聲 明 , 並 與 治 理 單 位 溝 通 所 有 可 能 被 認 為 會 影 響 會 計 師 獨 立 性 之 關 係 及 其 他 事 項 ( 包 括 相 關 防 護 措 施 ) 。 本 會 計 師 從 與 治 理 單 位 溝 通 之 事 項 中 , 決 定 對 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 民 國 106 年 度 合 併 財 務 報 表 查 核 之 關 鍵 查 核 事 項 。 本 會 計 師 於 查 核 報 告 中 敘 明 該 等 事 項,除 非 法 令 不 允 許 公 開 揭 露 特 定 事 項,或 在 極 罕 見 情 況 下,本 會 計 師 決 定 不 於 查 核 報 告 中 溝 通 特 定 事 項,因 可 合 理 預 期 此 溝 通 所 產 生 之 負 面 影 響 大 於 所 增 進 之 公 眾 利 益 。

21 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 合 併 資 產 負 債 表 民 國 106 年 及 105 年 12 月 31 日 單 位 : 新 台 幣 仟 元 106年12月31日 105年12月31日 代 碼 資 產 金 額 % 金 額 % 流動資產 1100 現金及約當現金(附註四及六) $ 8,486,360 23 $ 6,226,264 20 1110 透過損益按公允價值衡量之金融資產-流動(附註四及七) 944,828 3 1,242,338 4 1125 備供出售金融資產-流動(附註四及八) 2,326,682 6 2,021,471 6 1150 應收票據淨額(附註四、十及三三) 485,778 1 239,436 1 1170 應收帳款淨額(附註四、十及三三) 4,167,951 12 3,400,118 11 1180 應收帳款-關係人(附註四及三二) 4,165 - 4,669 - 1220 本期所得稅資產(附註四及二四) 13,736 - 4,500 - 130X 存貨(附註四、十一及三三) 2,267,535 6 1,955,317 6 1412 預付租賃款(附註十六) 6,503 - 6,636 - 1476 其他金融資產—流動(附註三三) 150,725 - 265,270 1 1479 其他流動資產(附註十七) 578,091 2 524,807 2 11XX 流動資產總計 19,432,354 53 15,890,826 51 非流動資產 1523 備供出售金融資產-非流動(附註四、八及三三) 3,248,972 9 3,141,683 10 1543 以成本衡量之金融資產-非流動(附註四及九) 310,743 1 331,904 1 1600 不動產、廠房及設備(附註四、五、十二及三三) 11,790,860 32 10,272,186 33 1760 投資性不動產(附註四及十三) 408,998 1 167,158 1 1805 商譽(附註四及十四) 232,332 1 374,463 1 1821 其他無形資產(附註四及十五) 297,593 1 350,272 1 1840 遞延所得稅資產(附註四及二四) 294,854 1 37,265 - 1915 預付設備款 4,009 - 19,996 - 1980 其他金融資產-非流動 21,516 - 14,925 - 1985 長期預付租賃款(附註十六) 238,992 1 250,476 1 1990 其他非流動資產(附註四、十七及二一) 62,439 - 79,685 1 15XX 非流動資產總計 16,911,308 47 15,040,013 49 1XXX 資 產 總 計 $ 36,343,662 100 $ 30,930,839 100 代 碼 負 債 及 權 益 流動負債 2100 短期借款(附註十八及三三) $ 5,357,830 15 $ 4,035,495 13 2110 應付短期票券(附註十八) 249,992 1 184,828 1 2170 應付帳款(附註十九) 1,096,027 3 867,035 3 2180 應付帳款-關係人(附註三二) 95,061 - 84,280 - 2219 其他應付款(附註二十及三二) 1,245,030 4 922,507 3 2230 本期所得稅負債(附註四及二四) 54,340 - 108,760 - 2320 一年內到期之長期負債(附註十八及三三) 789,317 2 717,572 2 2399 其他流動負債 79,251 - 57,147 - 21XX 流動負債總計 8,966,848 25 6,977,624 22 非流動負債 2540 長期借款(附註十八及三三) 5,259,205 15 3,385,447 11 2550 負債準備-非流動(附註四及二一) 10,213 - 4,204 - 2570 遞延所得稅負債(附註四及二四) 1,477,532 4 983,647 3 2640 確定福利負債(附註四及二一) 120,876 - 153,043 1 2670 其他非流動負債 42,192 - 35,926 - 25XX 非流動負債總計 6,910,018 19 4,562,267 15 2XXX 負債總計 15,876,866 44 11,539,891 37 歸屬於母公司業主之權益(附註四及二二) 3110 普 通 股 6,285,870 18 5,986,543 20 3200 資本公積 3,713,759 10 3,694,767 12 保留盈餘 3310 法定盈餘公積 2,064,398 5 1,917,297 6 3320 特別盈餘公積 645,316 2 648,929 2 3350 未分配盈餘 4,256,084 12 3,329,086 11 3300 保留盈餘總計 6,965,798 19 5,895,312 19 3400 其他權益 2,907,208 8 3,177,352 10 3500 庫藏股票 ( 290,088 ) ( 1 ) ( 290,088 ) ( 1 ) 31XX 本公司業主之權益總計 19,582,547 54 18,463,886 60 36XX 非控制權益 884,249 2 927,062 3 3XXX 權益總計 20,466,796 56 19,390,948 63 負 債 與 權 益 總 計 $ 36,343,662 100 $ 30,930,839 100 後 附 之 附 註 係 本 合 併 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

22 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 合 併 綜 合 損 益 表 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 單 位 : 新 台 幣 仟 元 , 惟 每 股 盈 餘 為 元 106年度 105年度 代 碼 金 額 % 金 額 % 4000 營業收入淨額(附註四及三 二) $ 20,113,757 100 $ 15,889,067 100 5000 營業成本(附註十一、二 一、二三及三二) 14,544,257 72 11,318,871 71 5900 營業毛利 5,569,500 28 4,570,196 29 營業費用(附註二一、二三 及三二) 6100 推銷費用 388,929 2 491,453 3 6200 管理費用 907,224 5 821,192 5 6300 研究發展費用 632,509 3 322,570 2 6000 營業費用合計 1,928,662 10 1,635,215 10 6900 營業淨利 3,640,838 18 2,934,981 19 營業外收入及支出(附註 四、十二及二三) 7010 其他收入 337,734 2 370,757 2 7020 其他利益及損失 ( 118,527 ) ( 1) ( 360,042) ( 2) 7050 財務成本 ( 294,832 ) ( 1) ( 308,140) ( 2) 7000 營業外收入及支出 合計 ( 75,625 ( 297,425) ( 2) 7900 本年度稅前淨利 3,565,213 18 2,637,556 17 7950 所得稅費用(附註四及二 四) ( 1,264,827 ) ( 6) ( 1,223,842) ( 8) 8200 本年度淨利 2,300,386 12 1,413,714 9 ( 接 次 頁 )

23 ( 承 前 頁 ) 106年度 105年度 代 碼 金 額 % 金 額 % 其他綜合損益 8310 不重分類至損益之項目 8311 確定福利計畫之再 衡量數 ($ 5,545 $ 2,528) - 8360 後續可能重分類至損益 之項目 8361 國外營運機構財務 報表換算之兌換 差額 ( 572,061 ) ( 3) ( 188,391) ( 1) 8362 備供出售金融資產 未實現損益 232,177 1 958,176 6 8300 其他綜合損益 ( 345,429 ) ( 2) 767,257 5 8500 本年度綜合損益總額 $ 1,954,957 10 $ 2,180,971 14 淨利歸屬於: 8610 母公司業主 $ 2,273,428 11 $ 1,471,010 9 8620 非控制權益 26,958 - ( 57,296) - 8600 $ 2,300,386 11 $ 1,413,714 9 綜合損益總額歸屬於: 8710 母公司業主 $ 1,997,723 10 $ 2,253,998 14 8720 非控制權益 ( 42,766 ( 73,027) - 8700 $ 1,954,957 10 $ 2,180,971 14 每股盈餘(附註二五) 來自繼續營業單位 9710 基 本 $ 3.69 $ 2.39 9810 稀 釋 $ 3.69 $ 2.39 後 附 之 附 註 係 本 合 併 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

24 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 合 併 權 益 變 動 表 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 單 位 : 新 台 幣 仟 元 歸 屬 於 母 公 司 業 主 之 權 益 ( 附 註 二 二 ) 其 他 權 益 項 目 國 外 營 運 機 構 備 供 出 售 保 留 盈 餘 財 務 報 表 換 算 金 融 資 產 非 控 制 權 益 代 碼 股 本 資 本 公 積 法 定 盈 餘 公 積 特 別 盈 餘 公 積 未 分 配 盈 餘 之 兌 換 差 額 未 實 現 損 益 庫 藏 股 票 總 計 ( 附 註 二 二 ) 權 益 總 額 A1 105 年 1 月 1 日餘額 $ 5,986,543 $ 3,792,857 $ 1,832,233 $ 648,929 $ 2,659,586 $ 375,800 $ 2,017,258 ( $ 290,088 ) $ 17,023,118 $ 993,942 $ 18,017,060 104 年度盈餘指撥及分配 B1 提列法定盈餘公積 - - 85,064 - ( 85,064 - B5 股東紅利-現金,每股 1.15 元 ( 688,452 ( 688,452 ( 688,452 ) 分配後餘額 5,986,543 3,792,857 1,917,297 648,929 1,886,070 375,800 2,017,258 ( 290,088 ) 16,334,666 993,942 17,328,608 M1 發放予子公司股利調整資本公積 - 12,983 - 12,983 - 12,983 M5 實際取得子公司部分權益 - ( 111,073 ( 26,688 ( 137,761 ) 6,404 ( 131,357 ) O1 子公司股東現金股利 ( 257 ) ( 257 ) D1 105 年度淨利 - 1,471,010 - 1,471,010 ( 57,296 ) 1,413,714 D3 105 年度其他綜合損益 ( 1,306 ) ( 173,675 ) 957,969 - 782,988 ( 15,731 ) 767,257 D5 105 年度綜合損益總額 - 1,469,704 ( 173,675 ) 957,969 - 2,253,998 ( 73,027 ) 2,180,971 Z1 105 年 12 月 31 日餘額 5,986,543 3,694,767 1,917,297 648,929 3,329,086 202,125 2,975,227 ( 290,088 ) 18,463,886 927,062 19,390,948 105 年度盈餘指撥及分配 B1 提列法定盈餘公積 - - 147,101 - ( 147,101 - B5 股東紅利-現金,每股 1.5 元 ( 897,981 ( 897,981 ( 897,981 ) B9 股東紅利-股票,每股 0.5 元 299,327 ( 299,327 - 分配後餘額 6,285,870 3,694,767 2,064,398 648,929 1,984,677 202,125 2,975,227 ( 290,088 ) 17,565,905 927,062 18,492,967 M1 發放予子公司股利調整資本公積 - 16,934 - 16,934 - 16,934 M5 處分子公司股權價格與帳面價值差額 - 2,058 - 2,058 - 2,058 M7 對子公司所有權權益變動 ( 73 ( 73 ) ( 25 ) ( 98 ) O1 子公司股東現金股利 ( 22 ) ( 22 ) B17 特別盈餘公積迴轉 ( 3,613 ) 3,613 - D1 106 年度淨利 - 2,273,428 - 2,273,428 26,958 2,300,386 D3 106 年度其他綜合損益 ( 5,561 ) ( 505,408 ) 235,264 - ( 275,705 ) ( 69,724 ) ( 345,429 ) D5 106 年度綜合損益總額 - 2,267,867 ( 505,408 ) 235,264 - 1,997,723 ( 42,766 ) 1,954,957 Z1 106 年 12 月 31 日餘額 $ 6,285,870 $ 3,713,759 $ 2,064,398 $ 645,316 $ 4,256,084 ( $ 303,283 ) $ 3,210,491 ( $ 290,088 ) $ 19,582,547 $ 884,249 $ 20,466,796 後 附 之 附 註 係 本 合 併 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

- 25 - 中 國 合 成 橡 膠 股 份 有 限 公 司 及 子 公 司 合 併 現 金 流 量 表 民 國 106 年 及 105 年 1 月 1 日 至 12 月 31 日 單 位 : 新 台 幣 仟 元 代 碼 106 年度 105 年度 營業活動之現金流量 A10000 本年度稅前淨利 $ 3,565,213 $ 2,637,556 A20010 收益費損項目 A20100 折舊費用 773,296 864,873 A20200 攤銷費用 69,374 67,065 A20400 透過損益按公允價值衡量之金融 資產利益 ( 2,490 ) ( 2,806 ) A20900 利息費用 292,916 306,622 A21200 利息收入 ( 18,238 ) ( 20,669 ) A21300 股利收入 ( 204,059) ( 214,462) A21900 股份基礎給付酬勞成本 9,926 15,002 A22500 處分及報廢不動產、廠房及設備 損失 44,580 18,185 A22700 處分投資性不動產利益 ( 270,125) - A23100 處分投資利益 ( 772 ) ( 616 ) A23500 金融資產減損損失 16,992 6,960 A23700 非金融資產減損損失 138,676 27,674 A24100 未實現外幣兌換利益 ( 44,128 ) ( 104,866) A29900 處分子公司利益-淨額 ( 2,271 ) - A30000 與營業活動相關之資產/負債變動數 A31110 持有供交易之金融資產 300,772 ( 577,384) A31130 應收票據 ( 261,456) ( 115,825) A31150 應收帳款 ( 1,032,422) ( 669,844) A31160 應收帳款-關係人 504 5,612 A31200 存 貨 ( 482,133) 374,032 A31240 其他流動資產 ( 77,365 ) ( 38,437 ) A31250 其他金融資產 171,675 147,346 A32150 應付帳款 290,398 125,733 A32160 應付帳款-關係人 10,781 16,697 A32180 其他應付款 340,586 204,068 A32200 負債準備 1,097 ( 163 ) A32230 其他流動負債 59,702 5,624 A32240 淨確定福利負債 ( 23,786 ) ( 32,746 ) A33000 營運產生之現金流入 3,667,243 3,045,231 A33100 收取之利息 17,658 25,308 A33500 支付之所得稅 ( 1,076,783) ( 1,053,922) AAAA 營業活動之淨現金流入 2,608,118 2,016,617 ( 接 次 頁 )

- 26 - ( 承 前 頁 ) 代 碼 106 年度 105 年度 投資活動之現金流量 B00300 取得備供出售金融資產 ( $ 170,210) $ - B01400 以成本衡量之金融資產減資退回股款 2,916 - B02300 處分子公司淨現金流入 93,977 - B02700 取得不動產、廠房及設備 ( 3,417,722) ( 2,212,780) B02800 處分不動產、廠房及設備 43 15,045 B05500 處分投資性不動產 437,006 - B06600 其他金融資產(增加)減少 ( 10,365 ) 52,525 B06700 其他非流動資產(增加)減少 ( 2,538 ) 94 B07100 預付設備款(增加)減少 15,912 ( 7,062 ) B07600 收取之股利 204,059 214,462 BBBB 投資活動之淨現金流出 ( 2,846,922) ( 1,937,716) 籌資活動之現金流量 C00100 短期借款增加(減少) 1,613,864 ( 1,006,319) C00500 應付短期票券增加 165,053 11,899 C01600 舉借長期借款 2,921,040 2,949,725 C01700 償還長期借款 ( 697,718) ( 1,468,501) C04400 其他非流動負債增加 4,240 21,316 C04500 發放現金股利 ( 881,047) ( 675,469) C05400 取得子公司股權 - ( 131,357) C05600 支付之利息 ( 278,452) ( 311,780) C05800 非控制權益變動 ( 47 ) 6,147 CCCC 籌資活動之淨現金流入(流出) 2,846,933 ( 604,339) DDDD 匯率變動對現金及約當現金之影響 ( 348,033) ( 59,904 ) EEEE 本年度現金及約當現金增加(減少)數 2,260,096 ( 585,342) E00100 年初現金及約當現金餘額 6,226,264 6,811,606 E00200 年底現金及約當現金餘額 $ 8,486,360 $ 6,226,264 後 附 之 附 註 係 本 合 併 財 務 報 告 之 一 部 分 。 ( 請 參 閱 勤 業 眾 信 聯 合 會 計 師 事 務 所 民 國 107 年 3 月 28 日 查 核 報 告 ) 董 事 長 : 張 安 平 經 理 人 : 黃 柏 松 會 計 主 管 : 林 桂 玉

27 (3) Audit Committee’s audit report Audit Committee’s Audit Report When producing the Company's 2017 business report, consolidated financial statement (including individual financial statement), and profit distribution motions, the board of directors commissioned Deloitte Taiwan to audit the financial statement and issue an audit report. The aforementioned business report, financial statement, and profit distribution proposal have been audited by this Audit Committee, and the committee does not note any discrepancies. Report is made according to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act. Please review accordingly.

To China Synthetic Rubber Corporation 2018 Annual General Meeting China Synthetic Rubber Corporation Audit Committee convener: Chih, Ching-Kang May 10, 2018

28 Matters for Approval Item 1. To approve 2017 Annul Business Report and Financial Statements. (Proposed by the Board of Directors) Description: 1. It is conducted according to Article 228 of the Company Act. 2. The 2017 Business Report, 2017 annual financial statements and consolidated financial statements have been approved by the 22nd meeting of the 16th term Board of Directors. The annual financial statements and consolidated statements have been audited by Certified Public Accountant Wu, Mei-Hui and Kuo, Cheng-Hung of Deloitte & Touch. 3. The aforementioned financial statements and business report have been reviewed by the Audit Committee. Please refer to page 6-27. 4. Please ratify.

Resolution: Item 2. The proposal for distribution of 2017 profits (Proposed by the Board of Directors) Description: 1. The Proposal for distribution of 2017 earnings is conducted according to Article 228 of the Company Act and Article 29 of the Articles of Incorporation. 2. The 2017 unappropriated retained earnings of previous years are NT$ 1,984,676,684. After adding actuarial gains and losses and other adjustment of NT$ (5,634,294), the adjusted unappropriated retained earnings are NT$ 1,979,042,390. By adding 2017 net profit of NT$ 2,273,428,648, and setting aside legal reverse of NT$ 227,342,865 and adding special capital reverse of NT$ 3,612,566, the total earnings available for distribution amounts to NT$ 4,028,740,739. By retaining earnings of NT$ 2,268,697,172 not to distribute, the rest earnings of NT$ 1,760,043,567 is distributed. It is proposed to distribute stock dividends at NT$ 1 per share and cash dividends at NT$ 1.8 per share. The

29 distribution of cash dividends shall be accounted by dollars and rounded off to the integer. Fractional dividend amounts that are less than NT$1 shall be ranked from high to low in value and from old to new in account number, and they shall be adjusted in this order until the total amount of cash dividend distribution is met. 3. Upon the approval of the Annual Shareholders’ Meeting, the BOD will determine the ex-dividend date and distribute the dividend to each share based on the number of shareholding ration of shareholders on the record date of the ex-dividend. The cash dividend to each and every shareholder shall be paid in a whole number of New Taiwan Dollars. Upon the approval of issuing new shares through increase capital approved by the Annual Shareholders’ Meeting and competent authority, the BOD will determine ex-right date for distribution. 4. Please refer to Annex 1 for earnings distribution proposal (Page 39). 5. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors and been audited by the Audit committee. 6. Please review and ratify.

Resolution:

30 Matters for Discussion Item 1.Proposal for a new share issue through capitalization of earnings. (Proposed by the Board of Directors) Description: 1.The total capital stock of the Company are in the amount of NT$ 10 billion into 1,000,000,000 shares, at NT$10 par value each share, and may be issued in installments. Until the end of 2017, the Company has issued 628,586,987 shares, and the total paid-up capital are NT$ 6,285,869,870. The unissued capital stock are in the amount of NT$ 3,714,130,130 into 371,413,013 shares. 2. For replenishing capital and further development of business, the management plans to withdraw NT$ 628,586,990 from 2017 distributable earnings to issue new shares through capitalization of earnings. It is proposed to issue 62,858,699 new shares, at NT$10 par value each share and dividends stocks will be calculated on the basis of 628,586,987 shares of capital stock issued in the end of 2017, 100 shares to be distributed without consideration for each 1000 shares held. 3. Upon the approval of the Annual Shareholders’ Meeting and the competent authority, the Board will determine ex-right date. The distributed shares are determined by the shareholding ratio of shareholders in the register of shareholders on the record date of the ex-right. Any shareholding of less than one share should be round off to one share or waived. The fractional shares rounded off less than one share shall be distributed in cash. Fractional shares will be purchased by persons arranged by the Chairman as authorized by the Board.

4. The new shares are issued by means of non-physical securities and the shareholder rights and obligations of the new shares are the same as those of existing shares. 5. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors. 6. Please vote on the matter. Resolution:

31 Item 2: Spin-off of the domestic Carbon Black Business (including assets, liabilities and business). (Proposed by the Board of Directors) Description: 1. For the purpose of transformation into an investment holding company and professional division of works, in order to enhance its competitiveness and operating performance, it is proposed to spin off and assign the business related to the domestic Carbon Black Business (including assets, liabilities and business, “Carbon Black Business”) to the Company’s wholly-owned subsidiary, Linyuan Advanced Materials Technology Co., Ltd. (“LAMT”), which will issue new shares for the Company as consideration, through a spin off transaction (the “Spin-Off”). The Spin-Off record date is scheduled on September 30, 2018. The Spin-Off will not affect the structure of the Company’s reinvestments. 2. The value of the Carbon Black Business to be assigned through the Spin-Off is estimated at NTD1,600,000,000, and total amount of the 80,000,000 common shares, where every NTD20 of business value will be exchanged for one common share issued by LAMT, be exchanged. Any fraction of shares will be compensated in cash by LAMT.

3. The Company prepared the “Carbon Black Business Spin-Off Plan” (including LAMT’s articles of incorporation, the book value of the assets and liabilities to be spun off and the expert’s opinion on the reasonableness of the share exchange ratio in the Spin-Off) in accordance with the Business Mergers and Acquisitions Act, the Company Act and other relevant laws and regulations. Please refer to Annex 2 attached hereto (pages 40 to 51). 4. The Company engaged an independent expert, Mr. Hsu, Hao-Wen, CPA, to provide his opinion on the reasonableness of the share exchange ratio in the Spin- Off for the Company. The Spin-Off is an internal organizational change and therefore does not affect the Company’s shareholders’ equity. In addition, the total amount of the 80,000,000 new shares to be issued at NTD20 per share is equal to NTD1,600,000,000, which is the value of the relevant assets and liabilities to be assigned. Therefore, the share exchange ratio in the Spin-Off should be reasonable. For the independent expert’s opinion, please refer to Appendix 3 of Annex 2 attached hereto (pages 49 to 51).

32 5. It is proposed that, the 2018 annual general meeting of shareholders authorize the Board of Directors and/or the person designated thereby to handle matters in relation to the scope of the Carbon Black Business to be assigned, valuation (including assets, liabilities and business), the share exchange ratio (if any adjustment to such ratio is necessary) and other matters related to the Spin-Off (including but not limited to amendments to the Carbon Black Business Spin- Off Plan and changes to timeline of the Spin-Off and the Spin-Off record date, administrative instructions from the competent authority, regulatory compliance changes in the objective circumstances, and other matters not covered herein in the future).

6. This proposal has been resolved by the Company’s 23rd meeting of the 16th Board of Directors. 7. Please vote on the matter. Resolution: Item 3: Spin-Off of the Biotechnology Business (including assets, liabilities and business). (Proposed by the Board of Directors) Description: 1. For the purpose of transformation into an investment holding company and professional division of works, in order to enhance its competitiveness and operating performance, it is proposed to spin off and assign the business related to the Biotechnology Business (including assets, liabilities and business) to the Company’s wholly-owned subsidiary to be newly established, Circular Commitment Company (provisional and subject to change, “CCMC”), which will issue new shares for the Company as consideration, through a spin off transaction (this “Spin-Off”). The Spin-Off record date is scheduled on September 30, 2018. The Spin-Off will not affect the structure of the Company’s reinvestments.

2. The value of the Biotechnology Business to be assigned through the Spin-Off is estimated at NTD90,000,000, and total amount of the 9,000,000 common shares, where every NTD10 of business value will be exchanged for one common share issued by CCMC. Any fraction of shares will be compensated in cash by CCMC.

33 3. The Company prepared the “Biotechnology Business Spin-Off Plan” (including CCMC’s articles of incorporation, the book value of the assets and liabilities to be spun off and the expert’s opinion on the reasonableness of the exchange ratio in the Spin-Off) in accordance with the Business Mergers and Acquisitions Act, the Company Act and other relevant laws and regulations. Please refer to Annex 3 attached hereto (pages 52 to 67). 4. The Company engaged an independent expert, Mr. Hsu, Hao-Wen, CPA, to provide his opinion on the reasonableness of the exchange ratio in the Spin-Off for the Company. The Spin-Off is an internal organizational change and therefore does not affect the Company’s shareholders’ equity. In addition, the total amount of the 9,000,000 new shares to be issued at NTD10 per share is equal to NTD90,000,000, which is the value of the relevant assets and liabilities to be assigned. Therefore, the exchange ratio in the Spin-Off should be reasonable. For the independent expert’s opinion, please refer to Appendix 3 of Annex 3 attached hereto (pages 65 to 67).

5. It is proposed that, the 2018 annual general meeting of shareholders authorize the Board of Directors and/or the person designated thereby to handle matters in relation to the scope of the Biotechnology Business to be assigned, valuation (including assets, liabilities and business), the share exchange ratio (if any adjustment to such ratio is necessary) and other matters related to the Spin-Off (including but not limited to amendments to the Biotechnology Black Business Spin-Off Plan and changes to timeline of the Spin-Off and the Spin-Off record date, administrative instructions from the competent authority, regulatory compliance changes in the objective circumstances, and other matters not covered herein in the future). In addition, such shareholders’ meeting will be deemed as the promoter meeting that enables CCMC’s incorporation. 6. This proposal has been passed by the Company’s 23rd meeting of the 16th Board of Directors.

7. Please vote on the matter. Resolution:

34 Item 4: The Company proposed to transform into an investment holding company through spin-off transactions and be renamed accordingly. (proposed by the Board of Directors) Description: 1. For the purpose of corporate reorganization, the Company is planning to transform into an investment holding company pursuant to the Operating Rules of the Taiwan Stock Exchange Corporation after the spin-off transactions of the carbon black business and the bio-tech business in Taiwan. 2. Subsequent to the transformation into an investment holding company, the Company is to be renamed accordingly as " International CSRC Investment Holdings Co., Ltd. " in Chinese and "International CSRC Investment Holdings Co., Ltd." in English.

3. The renaming of the Company will be proposed at the 2018 annual general meeting of shareholders for approval; if changes are to be made under the administrative directions of competent authorities, for the requirement of relevant laws and regulations, or due to objective environment, the Board of Directors and/or its designated person shall be authorized by a shareholders' meeting to handle all relevant matters. 4. This proposal has been passed by the Company's 23rd meeting of the 16th Board of Directors.

5. Please vote on the matter. Resolution: Item 5: To amend the certain articles of the Company's "Articles of Incorporation". (proposed by the Board of Directors) Description: 1. The amendments are proposed in response to the Company's transformation into an investment holding company through spin-off transactions and its renaming into " International CSRC Investment Holdings Co., Ltd. " in Chinese. 2. To facilitate the operation and development of the Company, its total capital shall be amended as NTD20 billion, divided into 2 billion shares; new provisions regarding employee stock option certificates will also be included in this

35 amendments. 3. Moreover, to satisfy the Company's needs for corporate governance, the number of directors is amended to 7 to 11 with at least 3 independent directors; the position of vice chairperson is also created under the structural adjustment of the Company. 4. Therefore, please see Annex 4 attached hereto (pages 68 to 71) for the comparison of the amendments to be made to the Company's "Articles of Incorporation". 5. This proposal has been passed by the Company's 21th、22nd and 23rd meeting of the 16th board of directors.

6. Please vote on the matter. Resolution: Item 6: Proposal for amendment to title of the Company’s regulations such as Rules of Procedure for Shareholders Meeting. (proposed by the Board of Directors) Description: 1. As the Company plans to transform into holding company, and change the Company name to “International CSRC Investment Holdings Co., Ltd. ”, it is proposed to change the title of the company name to “International CSRC Investment Holdings Co., Ltd. ” for “Rules of Procedure for Shareholders Meeting”, Regulations for Directors Election”, “Operation Procedures for funding to Others”, “Endorsement and Guarantee Work Procedures”, “Handling Procedures for the Acquisition or Disposal of Assets”,” Ethical Corporate Management Practice Principles”,” Code of Conduct”,” Corporate Governance Practice Principles” and other regulations able to be amended without the Annual Shareholders’ Meeting’s approval.

2. Please vote on the matter. Resolution:

36 Item 7: Proposal for distribution of souvenir for Annual Shareholders Meeting (Proposed by the Board of Directors) Description: 1.To encourage shareholders supporting the company for a long term and under the principle of fairness, the Company proposes to distribute the souvenir to shareholders with shareholding of more than 1000 shares of the Company. Upon approval of the 2018 Annual Shareholders Meeting, the proposal will be executed when every regular shareholders’ meeting or special shareholders meeting held since 2018 Annual Shareholders Meeting.

2.The proposal has been approved by the 23rd meeting of the 16th term Board of Directors. 3. Please vote on the matter. Resolution: Matters for Election To elect seven directors of the 17th term Board. (including three independent directors) (Proposed by the Board of Directors) Description: 1. The term of all directors of the 16th term Board will be end on June 23, 2018. All of directors of the 16th term Board will be dismissed while the Shareholders’ Meeting elect new directors on June 26, 2018. 2. According to Article 17 of the Articles of Incorporation, the company shall set up seven (7) directors, each with a three-year term. The election of directors adopts the system for nominating candidates, elected from the list of candidates for directors by the shareholders. If re-elected, they can be reappointed. 3. The seven (7) directors (including three (3) independent directors) elected by the Shareholders’ Meeting will assume the position after the adjournment of the shareholders’Meeting on June 26, 2018. The term begins from June 26, 2018 and end on June 25, 2021.

4. Please refer to Annex 5 for the list of director candidates of the 17th term Board.

37 (pages 72-74) 5. The proposal has been approved by the 23rd meeting of the 16th term Board of Directors. 6. Please vote. Voting Results: Matters for Discussion Item 8.Proposal to release the newly-elected Directors from non-competition restrictions Description: (1)According to Article 209 of the Company Act, a director who does anything for himself or on behalf of another person that is within the scope of the company's business, shall explain to the meeting of shareholders the essential contents of such an act and secure its approval.

(2)Since one or more of director(s) of the Company may engage in the investment in or operation of another company whose scope of business is the same or similar to that of the Company and may serve(s) as a director of that company, we hereby request the meeting of shareholders to approve that in case of the above mentioned situation, the non-competition restriction imposed on the directors and the entity they represent (including the legal representative of the entity if the entity is elected as the Director) be removed in accordance with above mentioned Article 209 of the Company Act.

(3)The proposal has been approved by the 21nd meeting of the 16nd term Board of Directors. Please refer to the Annex 6 for the list of releasing Director Candidates from Non-Competition Restriction. (Page 75) 4. Please vote on the matter. Resolution: Ad Hoc Motions

38 Ad Hoc Motions Meeting Adjourned

39 Annex 1: 2017 Profit Distribution Table China Synthetic Rubber Corporation PROFIT DISTRIBUTION TABLE 2017 Unit: NTD Item Amount Initial undistributed profit 1,984,676,684 Minus: list this period's actuarial gain/loss into reserved profit (5,561,257) Minus: adjustment arising from investments accounted for using equity method (73,037) Undistributed profit after adjustment 1,979,042,390 Add: net profit after tax in this period 2,273,428,648 Minus: 10% (appropriated as statutory surplus reserve) (227,342,865) Add: reverse from Special Reserve arising from first adoption of TIFRS 3,612,566 Distributable earnings 4,028,740,739 Minus: distribution items Shareholders' bonus - cash dividend (NT$1.8/share) (1,131,456,577) Shareholders' bonus - stock dividend (NT$1.0/share) (628,586,990) End undistributed profit 2,268,697,172 Note: 1. Cash dividend shall be allocated to each shareholder up to the dollar (fractional amount shall be rounded down to the dollar). The fractional amount total shall be listed in the Company's other income.

2. According to the Ministry of Finance's Letter No. 871941343 dated April 30, 1998, when distributing profit, an individual recognition method shall be utilized. The distribution of current profit shall give priority to that of the most current year.

40 Annex 2: Carbon Black Business Spin-Off Plan Carbon Black Business Spin-Off Plan For the purpose of transformation into an investment holding company, in order to enhance its overall competitiveness and operating performance, China Synthetic Rubber Corporation (“CSRC”) intends to spin off and assign the domestic Carbon Black business (including assets, liabilities and business, “Carbon Black Business”) to CSRC’s wholly-owned subsidiary, Linyuan Advanced Materials Technology Co., Ltd. (“LAMT”), which will assume all assets and liabilities relating to the Carbon Black Business commencing on the spin-off record date and issue new shares to the Company as consideration (the “Spin-Off”). The Spin-Off is a corporate reorganization within CSRC and therefore does not affect the structure of its reinvestments. The Carbon Black Business Spin-Off Plan (this “Plan) is formulated in accordance with the Business Mergers and Acquisitions Act, the Company Act and relevant laws and regulations as follows: Article 1. Method of Spin-off and Participants The Spin-Off will be undertaken through a spin-off transaction with an existing company, where CSRC will spin off and assign its relevant Carbon Black Business (including assets, liabilities and business) to its wholly-owned subsidiary, LAMT, which will issue new shares for CSRC as consideration. Participants in the Spin-Off: Assignor: China Synthetic Rubber Corporation Assignee: Linyuan Advanced Materials Technology Co., Ltd. Article 2. Articles of Incorporation of the Assignee For the amendments to the existing articles of incorporation of the assignee, please see Appendix 1.

Article 3. The Business Scope and Business Value, Assets and Liabilities Assigned by the Assignor to the Assignee 1. Scope of the business to be assigned through spin-off: (1) CSRC’s Carbon Black Business and relevant production, sale and purchase personnel. (2) The required real property, plants, equipment, inventories, bank deposits, account receivables and relevant assets (including tangible and intangible assets) and relevant liabilities of CSRC’s Carbon Black Business. (3) Relevant agreements entered into by CSRC’s Carbon Black Business (including but not limited to: supply agreements, sale agreements, technology license agreements, technical service agreements, lease agreements, loan agreements and other relevant agreements), lawsuits, legal relations, legal positions, licenses, permits and relevant rights and interests. Notwithstanding the foregoing, if the assignment of the above-mentioned agreements, lawsuits, legal relations, legal positions, licenses, permits and relevant rights and obligations shall be subject to the consent of the counterparty or a third party

41 under such agreements or laws or regulations, the above matters shall come into effect after such consent is obtained. (4) The portion of trademarks, technologies, software, know-How, trade secrets and other intellectual property rights owned by CSRC through research and development entitled to the Carbon Black Business prior to the Spin-Off record date shall be fully assigned to LAMT through the Spin-Off. CSRC and LAMT shall work in cooperation with each other to conduct the procedures for assignment of the aforementioned intellectual property rights, assignment of technology , protection of rights and provision of relevant information, documents and programs, so that the other party may exercise the relevant rights thereof. The expenses incurred from the protection of such rights after the Spin-Off record date shall be borne by LAMT. The Spin-Off of the intellectual property rights thereof shall not affect the rights licensed to third parties and any confidentiality obligations occurred prior to the Spin-Off. The licensing or assignment of the patent rights and the Pending Applications for patents in connection with the Carbon Black Business shall be determined by the parties in separate agreements.

(5) Assets, liabilities, rights and obligations, privileges, business/property to be assigned through spin-off in connection with CSRC’s Carbon Black Business that are entitled but still in effect, or the preferential tax treatment not being used, licenses, permits and related de jure and de facto relations and positions. 2. The value of the business to be assigned through spin-off: calculated on the basis of the assets to be assigned net of liabilities to be assigned, which is estimated at NTD1,600,000,000.

3. The assets to be assigned through spin-off: the assets to be assigned through spin- off are exhibited in Appendix 2 and the value thereof is estimated at NTD2,314,131,290. 4. The liabilities to be assigned through spin-off: The liabilities to be assigned through spin-off are exhibited in Appendix 2 and the value thereof is estimated at NTD714,131,290. 5. The value of the aforementioned business and the amounts of assets and liabilities from spin-off shall be evaluated based on the book value stated in the audited financial statements of CSRC as of March 31 2018. However, the exact value of business and amounts of assets and liabilities in the Spin-Off shall be based on the book value as of the Spin-Off record date. Notwithstanding the foregoing, cash may be used to adjust any discrepancy between the business value as of the Spin-Off record date and its amount aforesaid.

6. According to the Article 5, if any adjustment to the scope of the value of the business (including assets and liabilities) to be assigned as specified above through spin-off is necessary, CSRC’s shareholders’meeting may authorize its and LAMT’s Boards of Directors to make such adjustment. If any corresponding adjustment of the business value or the number and price of the shares to be issued by LAMT is

42 also necessary, the same shall apply. Article 4. The Business Value, Assets and Liabilities to be assigned by the Assignor shall be Exchanged for the Shares Issued by the Assignee in the Following Ratio and Method of Calculation. 1. Share Exchange Ratio: The value of the business to be assigned by CSRC in the Spin-Off estimated at NTD1,600,000,000, and total amount of the 80,000,000 common shares, where every NTD20 of business value will be exchanged for one common share issued by LAMT, be exchanged. In case of any fractional shares, LAMT shall, within 30 days after the amended registration is completed, pay the amount of business value worth less than one share in lump sum in cash to CSRC (rounded down to the nearest NTD).

2. Calculation Method: The aforementioned share exchange ratio is based on the book value stated in the audited financial statements of CSRC as of March 31 2018, the net asset value of each share and the independent expert’s opinion of share exchange ratio on the Spin-Off. The detail is exhibited in Appendix 3. Article 5. Adjustment to the Business Value, Assets and Liabilities to Be Assigned by the Assignor as well as the Ratio of the Business Value to the Number of Shares to be Issued by the Assignee.

If any of the following circumstances occur with respect to the share exchange ratio of the business value, assets and liabilities to be assigned to the new shares to be issued by LAMT in the Spin-Off from the execution hereof to the spin-off record date, CSRC’s shareholders’ meeting may authorize its and LAMT’s Boards of Directors to adjust the number of shares to be issued and/or issue price per share and the business value to be acquired by LAMT from the Spin-Off may be adjusted accordingly: 1. Any material change in LAMT that significantly influences the shareholders’ equity or stock prices; 2. Any adjustment is necessary for the business value assigned on the Spin-Off record date under this Plan due to the change of scope of the assets and liabilities of or value of the business or other reasons; 3. Any change in the detail or amount of the assets and liabilities to be assigned by CSRC through spin-off due to the re-appraisal of assets, depreciation, amortization, addition or impairment; or 4. Any such adjustment as deemed necessary by CSRC’s and LAMT’s Boards of Directors, or any situation where the ratio of the number of the shares to be issued by LAMT under Article 4 hereof is required to be adjusted due to changes in laws or regulations or the instructions of the competent authority. Article 6. The Total Number, Type and Quantity of Shares to Be Issued by the Assignee 1. LAMT will be assigned NTD1,600,000,000 worth of business in the Spin-Off and shall issue 80,000,000 common shares for CSRC.

43 2. LAMT shall complete the amended registration after the Spin-Off record date, and shall issue common shares for CSRC. After the consummation of the Spin-Off, CSRC shall directly hold 100% of the shares in LAMT. Article 7. The Purchase and Cancellation of the Shares Held by Dissenting Shareholders CSRC shall, as required by law, purchase the shares held by its shareholders who dissent from the relevant matters relating to the Spin-Off or this Plan pursuant to law. The shares so purchased shall be disposed of or canceled as required by law, and amended registration shall be made with respect to such disposal or cancellation. Article 8. Obligation of Notification and Announcement to the Creditors 1. After passing the Spin-Off by resolution, CSRC’s Shareholders’ Meeting and LAMT’s Board of Director meeting (acting in the authority of the Shareholders’ Meeting) shall prepare their respective balance sheets and assets list and notify and announce the resolution on the Spin-Off to their respective creditors. Such notice and announcement shall specify that the creditors may raise their objections during a period of at least 30 days. If any creditors express objections within the specified period, CSRC and LAMT shall handle the same as required by relevant laws or regulations.

2. If the debts to be repaid by CSRC to the dissenting creditors pursuant to the preceding paragraph fall within the scope of the Spin-Off in this Plan, CSRC may authorize its and LAMT’s Boards of Directors to adjust the business scope, business value, assets and liabilities as stated in Article 3 hereof. The same shall apply to any corresponding adjustment (if necessary) to the ratio or price of the new shares to be issued by LAMT. Article 9. Assumption of Rights and Obligations and Relevant Matters after the Spin-Off 1. As of the Spin-Off record date, LAMT shall assume all assets and liabilities and all rights and obligations effective as of the Spin-Off record date assigned by CSRC, unless otherwise stated in this Plan. CSRC shall cooperate in the procedures for such assumption.

2. Except that CSRC’s liabilities to be assigned through Spin-Off and its debts prior the Spin-Off may be separate, LAMT shall be jointly and severally liable with CSRC to repay CSRC’s liabilities prior to the Spin-Off within the scope of the contribution of capital to the business to be assigned pursuant to Paragraph 7 of Article 35 of the Business Mergers And Acquisitions Act. Notwithstanding, the statute of limitation of creditors’ claim for the joint and several liability to repay debts is two years from the Spin-Off record date.

Article 10. Transfer of Employees The transfer of CSRC’s Carbon Black Business employees to LAMT will be conducted according to Articles 16 and 17 of the Business Mergers and Acquisitions Act. LAMT will recognize the seniority of such employees at CSRC as of the Spin- Off record date.

44 Article 11. Exclusion of Employee Subscription for New Shares The issuance of new shares by LAMT in consideration of the Spin-Off is not governed by a provision of the CompanyAct that 10% to 15% of the new shares shall be reserved for the employee subscription. Article 12. Spin-Off Record Date 1. The Spin-Off record date is tentatively set on September 30, 2018; provided, however, that CSRC’s Board of Directors may determine such date after CSRC’s Shareholders’ Meetings and LAMT’s Board of Directors meeting (acting in the authority of the Shareholders’ Meeting) pass the Spin-Off by resolution and after the approval of the relevant competent authority (including Financial Supervisory Commission and Taiwan Stock Exchange Corporation) for the Spin-Off is obtained. It is proposed to authorize the both parties’ Boards of Directors or the person designated thereby to adjust the Spin-Off record date, if such adjustment is necessary due to any need to implement relevant legal procedures or any practical needs.

2. CSRC shall assign the business, personnel, equipment, and other assets and liabilities of its Carbon Black Business to LAMT on the Spin-Off record date. Article 13. Plan Execution Progress, Expected Completion Date and Handling of Delay in Progress 1. This Plan is expected to be presented to the CSRC’s Shareholders’ Meeting and LAMT’s Board of Directors meeting (acting in the authority of the Shareholders’ Meeting) for resolution on June 26, 2018; however, such date is subject to change due to the actual situation.

2. In respect of this Plan, the execution thereof, the Spin-Off record date, any failure to complete this Plan as scheduled and the date on which the Board of Directors meeting and the Shareholders’ Meeting shall be convened as required by laws or regulations, the Boards of Directors of both parties may handle the same according to the actual situation and needs. Article 14. Sharing of Taxes and Fees 1. Unless otherwise required by law or specified in this Plan, all taxes or fees arising from the signing or performance of this Plan shall be evenly borne by both parties, except for the tax exempted or tax free items. Should this Plan become null and void due to failure to be passed by the Shareholders’ Meeting or to be approved by the relevant competent authority, or any other reasons, the legal and accountant fees and relevant fees having been incurred shall be borne by CSRC. 2. The parties hereto shall make a concerted effort to pursue preferential tax treatment in connection with the Spin-Off from the government.

Article 15. Default 1. In the event of any default of this Plan and related requirements by either CSRC or

45 LAMT, the non-defaulting party may notify the other party in writing of rectification with 30 days; in case of any failure to make rectification, the non- defaulting party may terminate this Plan upon written notice to the other party. 2. In the event of any default of this Plan by either party hereto, which the defaulting party fails to remedy or is too material, to the extent that the other party suffers from any damage arising therefrom, the defaulting party shall be liable to the other party for the damage suffered thereby (including but not limited to the legal and accounting fees arising from the Spin-Off as well as any loss and other damage in connection therewith). The parties hereto agree that any party shall compensate for any damage (including but not limited to claims from any third party) suffered by the other party that is attributable to such party in the execution of matters in relation to this Plan.

Article 16. Change in the Paid-In Capital of the Assignor CSRC’s paid-in capital will not be reduced due to the Spin-Off unless the law requires that the paid-in capital shall be cancelled for the purpose of capital reduction. Article 17. Number of Treasury Shares that May be Repurchased and Principles of Such Repurchase after the Participants Calculate the Share Exchange Ratio After the execution of this Plan, LAMT shall not repurchase any treasury share; should CSRC wishes to repurchase its shares, it shall do so in accordance with relevant laws or regulations.

Article 18. Response to the Change in the Number of Participants In the event of any change in the number of participants in the Spin-Off after CSRC and LAMT make any information on this Plan, all participants shall do again the procedure or legal action again that have been already accomplished under this Plan. The Board of Directors is authorized to handle anything not covered by this provision as required by relevant laws or regulations. Article 19. Governing Law 1. The Spin-Off shall be conducted in accordance with the Business Mergers and Acquisitions Act. In case of any enactment of new law which is more favorable, such law may be applied to the Spin-Off.

2. This Plan shall be construed in accordance with the law of the Republic of China. In the event of any dispute arising from or in connection with this Plan, the parties hereto agree to submit to the jurisdiction of the Taiwan Taipei District Court as the court of first instance. Article 20. Miscellaneous 1. Should there be any provisions of this Plan in conflict with any relevant laws or regulations, only such provisions shall be rendered null and void, with other provisions remaining in full force and effect. Such provisions being rendered null

46 The Undersigned: China Synthetic Rubber Corporation (Sealed) Chairperson: Chang, An-Ping (Sealed) Linyuan Advanced Materials Technology Co., Ltd. (Sealed) Supervisor: Tsai, Li-Wen (Sealed) Date: May 10, 2018

47 Appendix 1 to Annex 2 Linyuan Advance Materials Co., Ltd. Comparison of the Articles of Incorporation before and after the Amendment Article Articles amended Current articles 6 The Company's total capital shall be NTD1 billion, divided into 100 million shares at NTD10 per share, issued in installments. The Company's total capital shall be NTD100 thousand, divided into 10 thousand shares at NTD10 per share, issued in all at once. 33 These Articles of Incorporation is established on April 27 of 2018. The first amendment was made on May 10 of 2018.

These Articles of Incorporation was established on April 27 of 2018.

48 Appendix 2 to Annex 2 Scope of the Company's Carbon black Business Operation (including asset, liability and business) to be Split-Off Currency: NTD Item Amount Asset Current Asset 1,548,760,541 Property, Plant and Equipment 733,784,818 Other Asset 31,585,931 Total Asset (1) 2,314,131,290 Liability Current Liability 574,008,041 Non-Current Liability 140,123,249 Total Liability (2) 714,131,290 Business Value (1)-(2) 1,600,000,000

49 Appendix 3 to Annex 2 Professional Opinions on the Reasonableness of the Share Exchange Ratio for the Spin-Off of the Carbon Black Business in Taiwan and Related Business of China Synthetic Rubber Corporation I. Summary For transforming into an investment holding company so as to upgrade the overall competitiveness and operation performance, China Synthetic Rubber Corporation ("CSRC") seeks to spin-off its Carbon Black Business in Taiwan and related operations (including assets, liabilities and business) to its wholly-owned subsidiary, Linyuan Advance Materials Co., Ltd. ("LAMT"), for LAMT to assume the assets and liabilities of the Biotechnology Business and issue new shares to CSRC as consideration. II. Calculation of stock price for the spin-off 1. CSRC tentatively set the spin-off record date on September 30 of 2018 to spin-off the business value and the amount of assets and liabilities for assignment on the basis of the book value stated in the audited financial statements of CSRC on March 31 of 2018. However, the exact business value and amount of assets and liabilities shall be based on the book value as of the spin-off record date.

2. The book value of the assets for spin-off by China Synthetic Rubber amounted to NTD2,314,131,290 and for liabilities amounted to NTD714,131,290; therefore, the business value shall amount to NTD1,600,000,000. Relevant details are shown below: Currency: NTD The business assets and liabilities of CSRC for spin-off in book value Asset Amount Liability Amount Current Asset 1,548,760,541 Current Liability 574,008,041 Property, Plant and Equipment 733,784,818 Non-Current Liability 140,123,249 Other Non-Current Asset 31,585,931 Total Liability B 714,131,290 Total Asset A 2,314,131,290 Spin-Off Net Asset A-B 1,600,000,000 Source: Provided by CSRC 3. Ratio of share exchange in the spin-off Item CSRC LAMT Business value (NTD) 1,600,000,000 Offering price per share (NTD) 20 Number of share for offering (share) 80,000,000 Ratio of share exchange in the pin-off CSRC exchange for 1 share of common share issued by LAMT at NTD20 on the basis of the business value and will acquire a total amount of 80,000,000 common shares from LAMT.

50 III. Reasonableness of the ratio for share exchange in the spin-off CSRC is contemplating on assigning it Carbon Black Business and related business to its wholly owned subsidiary, LAMT, through a spin-off. LAMT will issue 80,000,000 common shares for the exchange. The spin-off and the share exchange between the two parties shall be determined by the assessment of the value for the spin-off and the assumption of the price per share of stock for offering by LAMT, which are specified below: 1. According to Letter (91) Ji-Mi-Zi-128, "Accounting of Corporate Spin-off" issued by the Accounting Research and Development Foundation of the Republic of China, if an enterprise (assignor) is engaged in a corporate spin-off to another business entity (assignee) whereby the former acquires the equity share of the latter, and that the assignor and assignee are affiliates, it shall be deemed corporate reorganization. Therefore, the accounting shall be based on the original book value of assets (if there is asset reduction, the basis shall be the amount after the recognized asset reduction) net of liabilities as the cost for the acquisition of the equity shares, and shall not recognize for capital gain from the exchange. Accordingly, the assignee shall also use the original book value of assets (if there is asset reduction, the basis shall be the amount after the recognized asset reduction) net of the liabilities of the assignor as the cost of acquisition of assets and liabilities with the net face value between the two as equity capital and the amount in excess of the face value shall be recognized as capital reserve. 2. CSRC's main purpose of the spin-off is to enhance its competitiveness and operation performance, thereby assigns its Carbon Black Business to LAMT through a corporate spin-off with the issuance of new shares by LAMT to CSRC in exchange for the assignment. In the Spin-Off, LAMT is a wholly-owned subsidiary of CSRC, which made the Spin-Off a corporate reorganization that the shareholders' equity of CSRC will not be affected. As such, the assignment of the book value of assets and liabilities to LAMT in the spin-off is reasonableness.

3. LAMT issues 80,000,000 common shares at NTD20/share in exchange for the assignment of assets and liabilities at business value of NTD1,600,000,000. The ratio of share exchange in the Spin-Off is reasonableness IV. Conclusion and Limitation 1. In sum, the ratio of share exchange in the spin-off of the Carbon Black Business and related business was set with reference to the audited financial statements for the year ended on March 31, 2018. The book value of the assets and liabilities involved in the spin-off is based on the interpretation document of the Accounting Research and Development Foundation for assignment with the exchange of 80,000,000 common shares at NTD20/share to CSRC as consideration. As such the ratio of share exchange in the spin-off is reasonableness.

2. The rationality of the spin-off is evaluated based on the book value stated in the audited financial statements of CSRC on March 31, 2018. However, the exact business value and amount of assets and liabilities shall be based on the book value as of the spin-off record date. If relevant business value has subsequently experienced material changes, the expert will update these Opinions according to the latest information under the commission of

51 CSRC. 3. This information presented in this statement is provided by CSRC. I act as an independent third party to evaluate the ratio of share exchange and did not actually participate in the transaction and the design of the spin-off. Independent Expert: Hsu, Hao-wen This statement is presented to CSRC's Board of Directors and Shareholders' Meeting for reference or to be submitted to the competent authorities for recordation only, and may not be used for other purposes. Date: May 2, 2018

52 Annex 3: Biotechnology Business Spin-Off Plan Biotechnology Business Spin-Off Plan For the purpose of transformation into an investment holding company, in order to enhance its overall competitiveness and operating performance, China Synthetic Rubber Corporation (“CSRC”) intends to spin off and assign the Biotechnology Business (including assets, liabilities and business, “Biotechnology Business”) to CSRC’s wholly-owned subsidiary to be newly established, Circular Commitment Company (provisions and subject to change, “CCMC”), which will assume all assets and liabilities relating to the Biotechnology Business commencing on the spin-off record date and issue new shares to the Company (the “Spin-Off”). The Spin-Off is a corporate reorganization within CSRC and therefore does not affect the structure of its reinvestments. The Biotechnology Spin-Off Plan (this “Plan) is formulated in accordance with the Business Mergers and Acquisitions Act, the Company Act and relevant laws and regulations as follows: Article 1. Method of Spin-off and Participants The Spin-Off will be undertaken through a spin-off transaction with company to be newly established, where CSRC will spin off and assign its relevant Biotechnology Business (including assets, liabilities and business) to its wholly-owned subsidiary to be newly-established (after the spin-off record date), CCMC, which will issue new shares for CSRC as consideration. Participants in the Spin-Off: Assignor: China Synthetic Rubber Corporation Assignee: Circular Commitment Company (provisional and subject to change) Article 2. Articles of Incorporation of the Assignee Please refer to Appendix 1.

Article 3. The Business Scope and Business Value, Assets and Liabilities Assigned by the Assignor to the Assignee 1. Scope of the business to be assigned through spin-off: (1) CSRC’s Biotechnology Business and relevant production, sale and purchase personnel. (2) The required equipment, inventories, bank deposits, account receivables and relevant assets (including tangible and intangible assets) and relevant liabilities of CSRC’s Biotechnology Business. (3) Relevant agreements entered into by CSRC’s Biotechnology Business (including but not limited to: supply agreements, sale agreements, technology license agreements, technical service agreements, lease agreements, loan agreements and other relevant agreements), lawsuits, legal relations, legal positions, licenses, permits and relevant rights and interests. Notwithstanding the foregoing, if the assignment of the above-mentioned agreements, lawsuits, legal relations, legal positions, licenses, permits and relevant rights and

53 obligations shall be subject to the consent of the counterparty or a third party under such agreements or laws or regulations, the above matters shall come into effect after such consent is obtained. (4) The portion of trademarks, technologies, software, know-How, trade secrets and other intellectual property rights owned by CSRC through research and development entitled to the Biotechnology Business prior to the Spin-Off record date shall be fully assigned to CCMC through the Spin-Off. CSRC and CCMC shall work in cooperation with each other to conduct the procedures for assignment of the aforementioned intellectual property rights, assignment of technology , protection of rights and provision of relevant information, documents and programs, so that the other party may exercise the relevant rights thereof. The expenses incurred from the protection of such rights after the Spin-Off record date shall be borne by CCMC. The Spin-Off of the intellectual property rights thereof shall not affect the rights licensed to third parties and any confidentiality obligations occurred prior to the Spin-Off. The licensing or assignment of the patent rights and the Pending Applications for patents in connection with the Biotechnology Business shall be determined by the parties in separate agreements.

(5) Assets, liabilities, rights and obligations, privileges, business/property to be assigned through spin-off in connection with CSRC’s Biotechnology Business that are entitled but still in effect, or the preferential tax treatment not being used, licenses, permits and related de jure and de facto relations and positions. 2. The value of the business to be assigned through spin-off: calculated on the basis of the assets to be assigned net of liabilities to be assigned, which is estimated at NTD90,000,000.

3. The assets to be assigned through spin-off: the assets to be assigned through spin- off are exhibited in Appendix 2 and the value thereof is estimated at NTD355,081,475. 4. The liabilities to be assigned through spin-off: The liabilities to be assigned through spin-off are exhibited in Appendix 2 and the value thereof is estimated at NTD265,081,475. 5. The value of the aforementioned business and the amounts of assets and liabilities from spin-off shall be evaluated based on the book value stated in the audited financial statements of CSRC as of March 31 2018. However, the exact value of business and amounts of assets and liabilities in the Spin-Off shall be based on the book value as of the Spin-Off record date. Notwithstanding the foregoing, cash may be used to adjust any discrepancy between the business value as of the Spin-Off record date and its amount aforesaid.

6. According to the Article 5, if any adjustment to the scope of the value of the business (including assets and liabilities) to be assigned as specified above through spin-off is necessary, CSRC’s shareholders’ meeting may authorize its Board of

54 Directors to make such adjustment. If any corresponding adjustment of the business value or the number and price of the shares to be issued by CCMC is also necessary, the same shall apply. Article 4. The Business Value, Assets and Liabilities to be assigned by the Assignor shall be exchanged for the Shares Issued by the Assignee in the Following Ratio and Method of Calculation. 1. Share Exchange Ratio: The value of the business to be assigned by CSRC in the Spin-Off estimated at NTD90,000,000, and total amount of the 9,000,000 common shares, where every NTD10 of business value will be exchanged for one common share issued by CCMC. In case of any fractional shares, CCMC shall, within 30 days after the amended registration is completed, pay the amount of business value worth less than one share in lump sum in cash to CSRC (rounded down to the nearest NTD).

2. Calculation Method: The aforementioned share exchange ratio is based on the book value stated in the audited financial statements of CSRC as of March 31 2018, the net asset value of each share and the independent expert’s opinion of share exchange on the Spin-Off. The detail is exhibited in Appendix 3. Article 5. Adjustment to the Business Value, Assets and Liabilities to Be Assigned by the Assignor as well as the ratio of the Business Value to the Number of Shares to be issued by the Assignee.

If any of the following circumstances occur with respect to the share exchange ratio of the business value, assets and liabilities to be assigned to the new shares to be issued by CCMC in the Spin-Off from the execution hereof to the Spin-Off record date, CSRC’s shareholders’ meeting may authorize its Board of Directors to adjust the number of shares to be issued and/or issue price per share, and the business value to be acquired by CCMC from the Spin-Off may be adjusted accordingly: 1. Any change in the scope of the assets or liabilities of or value of the business to be assigned on the Spin-Off record date under this Plan, or any other event that makes it necessary to adjust the business value; 2. Any change in the detail or amount of the assets and liabilities to be assigned by CSRC through spin-off due to the re-appraisal of assets, depreciation, amortization, addition or impairment; or 3. Any such adjustment as deemed necessary by CSRC’s Boards of Directors, or any situation where the ratio of the number of the shares to be issued by CCMC under Article 4 hereof is required to be adjusted due to changes in laws or regulations or the instructions of the competent authority.

Article 6. The Total Number, Type and Quantity of Shares to Be Issued by the Assignee 1. CCMC will be assigned NTD90,000,000 worth of business in the Spin-Off and shall issue 9,000,000 common shares for CSRC. 2. CCMC shall complete the incorporation registration after the Spin-Off record date,

55 and shall issue common shares for CSRC. After the consummation of the Spin-Off, CSRC shall directly hold 100% of the shares in CCMC. Article 7. The Purchase and Cancellation of the Shares Held by Dissenting Shareholders CSRC shall, as required by law, purchase the shares held by its shareholders who dissent from the relevant matters relating to the Spin-Off or this Plan pursuant to law. The shares so purchased shall be disposed of or canceled as required by law, and amended registration shall be made with respect to such disposal or cancellation. Article 8. Obligation of Notification and Announcement to the Creditors 1. After passing the Spin-Off by resolution, CSRC’s Shareholders’ Meeting shall prepare its balance sheets and assets list and notify and announce the resolution on the Spin-Off to its creditors. Such notice and announcement shall specify that the creditors may raise their objections during a period of at least 30 days. If any creditors express objections within the specified period, CSRC shall handle the same as required by relevant laws or regulations.

2. If the debts to be repaid by CSRC to the dissenting creditors pursuant to the preceding paragraph fall within the scope of the Spin-Off in this Plan, CSRC may authorize its Boards of Directors to adjust the business scope, business value, assets and liabilities as stated in Article 3 hereof. The same shall apply to any corresponding adjustment (if necessary) to the ratio or price of the new shares to be issued by CCMC. Article 9. Assumption of Rights and Obligations and Relevant Matters after the Spin-Off 1. As of the Spin-Off record date, CCMC shall assume all assets and liabilities and all rights and obligations effective as of the Spin-Off record date assigned by CSRC, unless otherwise stated in this Plan. CSRC shall cooperate in the procedures for such assumption.

2. Except that CSRC’s liabilities to be assigned through Spin-Off and its debts prior the Spin-Off may be separate, CCMC shall be jointly and severally liable with CSRC to repay CSRC’s liabilities prior to the Spin-Off within the scope of the contribution of capital to the business to be assigned pursuant to Paragraph 7 of Article 35 of the Business Mergers And Acquisitions Act. Notwithstanding, the statute of limitation of creditors’ claim for the joint and several liability to repay debts is two years from the Spin-Off record date.

Article 10. Transfer of Employees The transfer of CSRC’s Biotechnology Business employees to CCMC will be conducted according to Articles 16 and 17 of the Business Mergers and Acquisitions Act. CCMC will recognize the seniority of such employees at CSRC as of the spin-off record date. Article 11. Spin-Off Record Date

56 1. The spin-off record date is tentatively set on September 30, 2018; provided, however, that CSRC’s Board of Directors may determine such date after CSRC’s Shareholders’ Meetings passes the Spin-Off by resolution and after the approval of the relevant competent authority (including Financial Supervisory Commission and Taiwan Stock Exchange Corporation) for the Spin-Off is obtained. It is proposed to authorize the CSRC’s Board of Directors or the person designated thereby to adjust the Spin-Off record date, if such adjustment is necessary due to any need to implement relevant legal procedures or any practical needs. 2. CSRC shall assign the business, personnel, equipment, and other assets and liabilities of its Biotechnology Business to CCMC on the Spin-Off record date. Article 12 Plan Execution Progress, Expected Completion Date and Handling of Delay in Progress 1. CSRC expects to convene the Shareholders’Meeting as CCMC’s Promoter Meeting on June 26, 2018, with such date subject to the actual situation, wherein the Spin- Off will be passed by resolution.

2. In respect of this Plan, the execution thereof, the Spin-Off record date, any failure to complete this Plan as scheduled and the date on which the Board of Directors meeting and the Shareholders’ Meeting shall be convened as required by laws or regulations, CSRC’s Board of Directors may handle the same according to the actual situation and needs. Article 13. Sharing of Taxes and Fees 1. Unless otherwise required by law or specified in this Plan, all taxes or fees arising from the signing or performance of this Plan shall be evenly borne by both parties, except for the tax exempted or tax free items. Should this Plan become null and void due to failure to be passed by the Shareholders’ Meeting or to be approved by the relevant competent authority, or any other reasons, the legal and accountant fees and relevant fees having been incurred shall be borne by CSRC. 2. CSRC and CCMC shall make a concerted effort to pursue preferential tax treatment in connection with the Spin-Off from the government.

Article 14. Default 1. In the event of any default of this Plan and related requirements by either CSRC or CCMC, the non-defaulting party may notify the other party in writing of rectification with 30 days; in case of any failure to make rectification, the non- defaulting party may terminate this Plan upon written notice to the other party. 2. In the event of any default of this Plan by either party hereto, which the defaulting party fails to remedy or is too material, to the extent that the other party suffers from any damage arising therefrom, the defaulting party shall be liable to the other party for the damage suffered thereby (including but not limited to the legal and accounting fees arising from the Spin-Off as well as any loss and other damage in connection therewith). The parties hereto agree that any party shall compensate for

57 any damage (including but not limited to claims from any third party) suffered by the other party that is attributable to such party in the execution of matters in relation to this Plan. Article 15. Change in the Paid-In Capital of the Assignor CSRC’s paid-in capital will not be reduced due to the Spin-Off unless the law requires that the paid-in capital shall be cancelled for the purpose of capital reduction. Article 16. Number of Treasury Shares that May be Repurchased and Principles of Such Repurchase after the Participants Calculate the Share Exchange Ratio should CSRC wishes to repurchase its shares after the execution of this Plan, it shall do so in accordance with relevant laws or regulations.

Article 17. Response to the Change in the Number of Participants In the event of any change in the number of participants in the Spin-Off after CSRC and CCMC make any information on this Plan, all participants shall do again the procedure or legal action again that have been already accomplished under this Plan. The Board of Directors is authorized to handle anything not covered by this provision as required by relevant laws or regulations. Article 18. Governing Law 1. The Spin-Off shall be conducted in accordance with the Business Mergers and Acquisitions Act. In case of any enactment of new law which is more favorable, such law may be applied to the Spin-Off.

2. This Plan shall be construed in accordance with the law of the Republic of China. In the event of any dispute arising from or in connection with this Plan, the parties hereto agree to submit to the jurisdiction of the Taiwan Taipei District Court as the court of first instance. Article 19. Miscellaneous 1. Should there be any provisions of this Plan in conflict with any relevant laws or regulations, only such provisions shall be rendered null and void, with other provisions remaining in full force and effect. Such provisions being rendered null and void in conflict with relevant laws or regulations may be otherwise discussed and determined within the extent permitted by law by CSRC’s Boards of Directors as authorized by its Shareholders’ Meeting.

2. If any of the provisions contained in this Plan must be changed as required by the instruction of the competent authority, such provisions shall be amended according to such instruction or amended by CSRC’s Board of Directors pursuant to such instruction. 3. This Plan shall be in full force and effect after being passed by CSRC’s Shareholders’ Meetings by resolution. In addition, this plan shall be null and void ab initio, should it fail to be permitted or approved by the competent authority.

58 4 Anything not included in this Plan shall be governed by applicable laws and the requirements of the competent authority, or handled by CSRC’s Board of Directors (as authorized by the Shareholders’ Meeting) in its sole discretion, if such laws or requirements are not applicable. 5. The Appendix to this Plan shall constitute a part of this Plan. The Undersigned: China Synthetic Rubber Corporation (Sealed) Chairperson: Chang, An-Ping (Sealed) Date: May 10, 2018

59 Appendix 1 to Annex 3 Circular Commitment Company Articles of Incorporation Chapter 1 General Provisions Article 1 The Company is duly incorporated as a company limited by shares under the Company Act and named "Circular Commitment Company". Article 2 The Company's business scope is as follows: 1. IG01010 Biotechnology Services 2. H201010 Investment 3. ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval. Article 3 When required by business, the Company can make external guarantees. Article 4 The Company's reinvestment shall be handled by the Board of Directors. The total investment amount cannot exceed 40% of the Company's paid-up capital. Article 5 The Company's headquarter is established in Taipei City. When necessary, the Board of Directors can vote to establish subsidiaries and factories in other domestic or international locations.

Chapter 2 Shares Article 6 The Company's total capital is set at NTD100 million, split into 10 million shares. Each share is NTD10. The shares are distributed in lots. Article 7 All share certificates issued by the Company shall be in registered form, signed by, or affixed with the seals of, at least three (3) Directors and authenticated in accordance with applicable laws upon issuance. The Company may issue shares without printing share certificates for the shares issued under Article 161-1 of the Company Act if the Company's capital is under the threshold set forth by the competent authority.

Article 8 The Company's stock related affairs shall be handled according to law and regulations prescribed by the competent authorities. Article 9 The Company shall stop stock transfer registration 30 days before the annual general shareholders' meeting, 15 days before a special shareholders' meeting, and five days before the Company decides on dividend/bonus allocation or other benefits. Chapter 3 Shareholders' Meetings Article 10 Shareholders' meeting can be divided into general meetings and special meetings: 1. The general meeting shall be convened by the Board within six months after the end of each fiscal year.

2. Special meetings shall be convened when required according to law.

60 Article 11 Unless otherwise stipulated by the Company Act, general shareholders' meetings shall be convened by the Board of Directors. The chairperson of the Board shall be the chair of the meeting. If the chairperson of the Board is absent, he/she shall designate a director as his/her substitute. When no substitute is designated, the directors shall nominate a director among themselves as the substitute. Article 12 The shareholders shall be notified of the general meeting 20 days prior to the date and 10 days prior to the date of special meetings. The notification shall provide the meeting date, location, and reason for convening the meeting. Article 13 Unless otherwise provided for in the Company Act, a meeting of shareholders shall proceed only if attended by shareholders representing more than one-half of the total outstanding capital stock of the Company. Resolutions of a shareholders meeting shall be made at the meeting with the concurrence of a majority of the votes held by the shareholders present at the meeting.

Article 14 Each shareholder is entitled to one vote for each share held. Article 15 If shareholder cannot personally attend the annual general meeting, he/she can issue a power of attorney printed by the Company. The document shall be signed or stamped, state the scope of authorization, and the designated proxy who will attend the meeting. Except for trust enterprises or securities agencies authorized by the securities’ competent authority, when one person has been designated as a proxy by two or more shareholders, the votes that exceed 3% of the total issued shares represented by the proxy shall not be counted.

The aforementioned power of attorney shall be received by the Company at least five days prior to the annual general meeting. If there is overlapping power of attorneys, the one that was received first shall be deemed the valid one. However, this does not apply to power of attorney that is revoked. Article 16 Annual general meeting resolutions shall be made into record, signed or stamped by the chairperson, and issued to the shareholders within 20 days after the meeting. The record shall be stored at the Company perpetually. The shareholders' attendance sign in log and attendance power of attorney shall be kept for at least one year. For records involved in litigation, the records shall be kept until the litigation is over. Article 17 If the Company is held by a single corporate shareholder, the functional duties and power of the shareholders' meeting shall be exercised by the Board of Directors of the Company; in which case the provisions relating to the shareholders' meeting as set out in these Articles of Incorporation shall not apply.

Chapter 4 Directors, Supervisors and Managers Article 18 The Company shall have 3 Directors and 1 Supervisor to be elected at the shareholders meeting from among the individuals of legal capacity, with the term of three years. All Directors and Supervisor shall be eligible for re-election. If a corporate shareholder is elected as a director or supervisor, the authorized representative of such corporate shareholder may be replaced by a person to be authorized by the company so as to fulfill the unexposed term of office of the predecessor.

Article 19 The Board of Directors consists of directors, and their duties are as follows:

61 1. Draft of the operating plan. 2. Draft of the profit distribution. 3. Draft of capital increase/decrease. 4. Approval of important regulations and contracts. 5. The dismissal of the general manager. 6. Setting up or abolishing subsidiaries. 7. Review of the budget final account. 8. Review of real estate purchase/sales and investment in other businesses. 9. Decisions of other important items. Article 20 The Board of Directors shall be attended by two-thirds of the directors. The chairperson shall be nominated from among the directors. A majority vote from attending directors is required to approve a chairperson. Article 21 The Board of Directors meeting shall be convened by the chairperson. Unless otherwise stipulated by the Company Act and this charter, board resolution must be passed by a majority of attending directors, and the meeting must have over half of the directors attending. A director may appoint another director as his/her proxy to attend the Board meetings.

If a Board meeting is conducted via video conference, directors partaking in the video conference shall be recognized as having attended the meeting in person. Convening of the Board of Directors can be in writing, by email, or by fax notification form. The Board of Directors shall be chaired by the chairperson of the Board. If the chairperson of the board is on leave or cannot exercise his/her duties, the chairperson can designate a director as a proxy. If the chairperson did not designate a proxy, the directors shall nominate a proxy among themselves.

Article 22 The Supervisor's duties are as follows: 1 Adjusting the Company's financial status 2 Auditing the Company's books and records 3 Inquiring upon the Company's business operation 4 Other functions prescribed under the law 5 Attending Board meetings and stating his/her opinion, but with no voting right. Article 23 Remuneration of Directors and Supervisor(s) of the Company shall be determined by the shareholders' meeting and may be paid at such level as generally adopted by the enterprises of the same industry.

Article 24 The Company may take out directors' or supervisors' liability insurance with respect to liabilities resulting from exercising their duties during their terms of occupancy. Article 25 The Company may have one or more managerial officers. Appointment, discharge and the remuneration of the managerial officers shall be in compliance with Article

62 29 of the Company Act. Chapter 5 Accounting Article 26 The Company's fiscal year is from January 1 to December 31 of the same calendar year. Article 27 At the end of each fiscal year the Board of Directors shall produce various reports according to Article 228 of the Company Act, and follow legal procedures to submit the reports to the Supervisor for certification at least 30 days before the general shareholders' meeting and further submit the same along with the Supervisor's report to the shareholders' meeting for its approval.

Article 28 If the Company shows a profit for the year, the Company shall allocate: (1) Employee remuneration: 1/10,000 to 3%. (2) Directors remuneration: shall not be higher than 1%. If the Company has accumulated losses, the amount shall be reserved to make up the losses before remuneration is issued to the employee and directors based on ratios stated in sections one and two above. Employee remuneration can be in the form of stock or cash. The subject of issuance shall be company employees who meet qualifications.

Employee and director remuneration allocation must be approved by the Board of Directors in a meeting attended by more than two-thirds of all Board members, where half of attending directors approve. The remuneration resolution shall be reported in the annual general meeting. Article 29 In addition to paying taxes and making up for accumulated losses, a 10% profit reserve shall be appropriated from the Company's annual final account net profit. However, if the legal profit reserve has reached the Company's total paid-up capital, the reserve no longer needs to be appropriated. The profit shall be added to the accumulated undistributed profit. When required, the accumulated undistributed profit can be allocated or returned to the profit reserve or kept as profit according to law. The remainder shall be allocated as common stock dividend. The distribution ratio is based on the dividend policy stipulated in paragraph 2 of this Article. The Board of Directors shall propose a profit distribution proposal to be voted on by the annual general meeting.

To improve financial structure, increase working capital, or support important investment plans, the profit can be can be converted to capital and distributed as stock dividend. However, the proportion of cash dividend shall exceed 20% of the common stock dividend. Article 30 The distribution of shareholders dividend is based on the number of shares registered to the shareholder in the shareholders’ledger on the dividend record date. Chapter 6 Miscellaneous Article 31 The Company's organization charter and operational regulations shall be established separately.

63 Article 32 For issues not addressed by this charter, please handle according to the Company Act and other relevant regulations. Article 33 This Articles of Incorporation is established on June 26 of 2018. Circular Commitment Company (Sealed) Chairperson (Sealed) The sole shareholder: China Synthetic Rubber Corporation (Sealed)

64 Appendix 2 to Annex 3 China Synthetic Rubber Corporation Scope of the Company's Biotechnology Business Operation (including asset, liability and business) to be Spin-Off Currency: NTD Item Amount Asset Current Asset 354,273,357 Property, Plant and Equipment 808,118 Other Asset 0 Total Asset (1) 355,081,475 Liability Current Liability 265,081,475 Non-Current Liability 0 Total Liability (2) 265,081,475 Business Value (1)-(2) 90,000,000

65 Appendix 3 to Annex 3 Professional Opinions on the Reasonableness of the Share Exchange Ratio for the Spin-Off of the Biotechnology Business and Related Business of China Synthetic Rubber Corporation I. Summary For transforming into an investment holding company so as to upgrade the overall competitiveness and operation performance, China Synthetic Rubber Corporation (hereinafter referred to as "CSRC") seeks to spin-off its Biotechnology Business and related operations (including assets, liabilities and business) to its newly set up and wholly-owned subsidiary, Circular Commitment Company (hereinafter referred to as "CCMC"), for CCMC to assume the assets and liabilities of the Biotechnology Business and issue new shares to CSRC as consideration.

II. Calculation of stock price for the spin-off 1. CSRC tentatively set the spin-off record date on September 30 of 2018 to split the business value and the amount of assets and liabilities for assignment on the basis of the book value stated in the audited financial statements of CSRC on March 31 of 2018. However, the exact business value and amount of assets and liabilities shall be based on the book value as of the spin-off record date. 2. The book value of the assets for spin-off by CSRC amounted to NTD355,081,475 and for liabilities amounted to NTD265,081,475; therefore, the business value shall amount to NTD90,000,000. Relevant details are shown below: Currency: NTD The business assets and liabilities of CSRC for spin-off in book value Asset Amount Liability Amount Current Asset 354,273,357 Current Liability 265,081,475 Property, Plant and Equipment 808,118 Non-Current Liability 0 Other Non-Current Asset 0 Total Liability B 265,081,475 Total Asset A 355,081,475 Spin-Off Net Asset A-B 90,000,000 Source: Provided by CSRC 3. Ratio of share exchange in the spin-off Item CSRC CCMC Business value (NTD) 90,000,000 Offering price per share (NTD) 10 Number of share for offering (share) 9,000,000 Ratio of share exchange in the spin- off CSRC exchange for 1 share of common share issued by CCMC at NTD10 on the basis of the business value and will acquire a total of 9,000,000 common shares from CCMC.

66 III. Reasonableness of the ratio for share exchange in the spin-off CSRC is contemplating on assigning it Biotechnology Business and related business to its newly set up and wholly owned subsidiary, CCMC, through a spin-off. CCMC will issue 9,000,000 common shares for the exchange. The spin-off and the share exchange between the two parties shall be determined by the assessment of the value for the spin-off and the assumption of the price per share of stock for offering by CCMC, which are specified below: 1. According to Letter (91) Ji-Mi-Zi-128, "Accounting of Corporate Spin-off" issued by the Accounting Research and Development Foundation of the Republic of China, if an enterprise (assignor) is engaged in a corporate spin-off to another business entity (assignee) whereby the former acquires the equity share of the latter, and that the assignor and assignee are affiliates, it shall be deemed a corporate reorganization. Therefore, the accounting shall be based on the original book value of assets (if there is asset reduction, the basis shall be the amount after the recognized asset reduction) net of liabilities as the cost for the acquisition of the equity shares, and shall not recognize for capital gain from the exchange. Accordingly, the assignee shall also use the original book value of assets (if there is asset reduction, the basis shall be the amount after the recognized asset reduction) net of the liabilities of the assignor as the cost of acquisition of assets and liabilities with the net face value between the two as equity capital and the amount in excess of the face value shall be recognized as capital reserve. 2. CSRC's main purpose of the spin-off is to upgrade its competitive power and operation performance, thereby assigns its Biotechnology Business to CCMC through a corporate spin-off with the issuance of new shares by CCMC to CSRC in exchange for the assignment. In this spin-off, CCMC is a wholly-owned subsidiary of CSRC, which made this spin-off a corporate reorganization that the shareholders' equity of CSRC will not be affected. As such, the assignment of the book value of assets and liabilities to CCMC in the spin-off is reasonableness.

3. CCMC issues 9,000,000 shares at NTD10/share in exchange for the assignment of assets and liabilities at business value of NTD90,000,000. The ratio of share exchange in this spin-off is reasonableness. IV. Conclusion and Limitation 1. In sum, the ratio of share exchange in the spin-off of the Biotechnology Business and related business was set with reference to the audited financial statements for the year ended on March 31 of 2018. The book value of the assets and liabilities involved in the spin-off is based on the interpretation document of the Accounting Research and Development Foundation for assignment with the exchange of 9,000,000 shares of common stock at NTD10/share offered to CSRC as consideration. As such the ratio of share exchange in the spin-off is reasonableness.

2. The rationality of the spin-off is evaluated based on the book value stated in the audited financial statements of CSRC on March 31, 2018. However, the exact business value and amount of assets and liabilities shall be based on the book value as of the spin-off record date. If relevant business value has subsequently experienced material changes, the expert will update these Opinions according to the latest information under the

67 commission of CSRC. 3. This information presented in this statement is provided by CSRC. I act as an independent third party to evaluate the ratio of share exchange and did not actually participate in the transaction and the design of the spin-off. Independent Expert: Hsu, Hao-wen This statement is presented to CSRC's Board of Directors and Shareholders' Meeting for reference or to be submitted to the competent authorities for recordation only, and may not be used for other purposes. Date: May 2, 2018

68 Annex 4: Comparison of the Articles of incorporation before and after the amendment. China Synthetic Rubber Corporation Articles Comparison Table for Articles of Association Before and After Amendment (After the transition, renamed as International CSRC Investment Holdings Co., Ltd.) articles of association Amendment articles Current articles Description Article 1 The company is organized in accordance with the provisions of the Company Act Co., Ltd. and related laws and regulations and is named International CSRC Investment Holdings Co., Ltd.

Article 1 The company is organized in accordance with the provisions of the Company Act Corporation and related laws and regulations and named the China Synthetic Rubber Corporation. Rename in coordination with the transformation of the company into an investment holdings company. Article 2 The company's business scope is as follows: H201010 General Investment Industry. Article 2 The company’s business scope is as follows: 1. C801060 synthetic rubber manufacturing industry. 2. C804990 other rubber products manufacturing industry. 3. C804020 industrial rubber products manufacturing industry.

4. D101040 non-public power generation industry. 5. D401010 thermal energy supply industry. 6. F199990 other wholesale industry. 7. F401010 international trade industry. 8. F103010 feed wholesale industry. 9. F202010 feed retail industry. 10. C105010 edible oil manufacturing industry. 11. F102020 edible oil wholesale industry. 12. F203010 food and miscellaneous goods, beverages retailing industry. 13. IG01010 biotechnology services industry. 14. ZZ99999 in addition to the licensing business, business not prohibited or restricted by law can be engaged in.

In coordination with the transformation of the company into an investment holdings company, specialize in investment, and amend business projects.

69 Article 6 The total capital of the company is set at NT$20 billion, divided into 2 billion shares and NT$1 per share. They are issued by times. The company may issue employee share option certificates to the employees of the company and domestic and foreign subsidiaries. In the total amount of the previous shares, 60 million shares are held as shares for the issuance of employee share options certificates, which may be issued by times in accordance with resolutions of the board of directors. When the company’s share can be legally repurchased by the company itself, the board of directors shall be authorized to act as provided for by law.

Article 6 The total capital of the company is set at NT$10 billion, divided into 1 billion shares. Each share is worth NT$10, issued by many times. To meet the needs of the company's operation and development, increase the total amount of capital and add the shares of employee share option certificates. Article 6-1 When the Company issues employee share option certificates with a subscription price lower than the closing price of the Company’s common shares on the issued day, there should be the majority of the present shareholders representing the total number of shares issued, and more than two-thirds of the present shareholders’ voting rights consent. Then it can be done.

The transfer by the company to employees at an average price lower than the actual shares bought back shall be subject to the consent of more than two- thirds of the voting rights of the attended shareholders and the majority of the present shareholders representing the total number of shares issued in the most recent meeting. (New addition) To meet the needs of the company's operation and development, add the new provisions for the issuance of employee share options.

70 Article 17 The board of directors of the company has seven to eleven directors, and the term of office is three years. The election of directors adopts system for nominating candidates, elected from the list of candidates for directors by the shareholders. If re-elected, they can be reappointed. Of the above-mentioned director quota, there must be no less than three independent directors. (Omitted below). Article 17 The company shall set up seven directors, each with a three-year term. The election of directors adopts the system for nominating candidates, elected from the list of candidates for directors by the shareholders. If re- elected, they can be reappointed. Of the above-mentioned director quota, three are independent directors. (Omitted below).

To coordinate the needs of the company's operation and development and corporate governance, amend the number of directors and independent directors. Article 19 The board of directors shall have the attendance of more than two-thirds of the directors, and the consent of more than one-half of the directors, and then elect one of the directors as the chairman, and one of whom shall be elected as vice chairman. The chairman shall preside over the company and shall preside over all business. Article 19 The board of directors shall have the attendance of more than two-thirds of the directors, and the consent of more than one-half of the directors, and then elect one of the directors as the chairman.

In coordination with the company's operation and development and organizational structure adjustment, add the vice chairman. Article 21 The board of directors shall be chaired by the chairman. When the chairman takes leave or is unable to exercise his power for any reason, the vice chairman of the board shall represent the chairman. If both the chairman and the vice chairman are absent, the chairman shall appoint one director to act as the agent. If no agent is designated by the chairman, the directors shall choose one person as agent among each other.

Article 21 The board of directors shall be chaired by the chairman. When the chairman takes leave or is unable to exercise his power for any reason, he shall appoint one director as the agent. If no agent is designated, the directors shall choose one person as agent among each other. In coordination with the company's operation and development and organizational structure adjustment, add the vice chairman. Article 25 For the company, a general manager, vice general manager or other manager to meet the needs of the company's operations of management may be set according to the Article 25 The company sets up a general manager to handle all business of the company according to the articles of association.

To meet the company's operation and development needs and organizational structure adjustments.

71 resolution of board of directors, each of the above managers may be one or more persons.

- 72 - Annex 5:List of candidates and the related information List of director candidates Company Name Representative Education Past Positions Current Positions Taiwan Cement Corporation Chang, An Ping Master Degree in Business Administration, New York Umiversity Chairman, Taiwan Cement Corp. Chairman, Chia Hsin Cement Corp. Chairman, Taiwan Cement Corp. Chairman, Taiwan Prosperity Chemical Corp. Chairman, Ho-Ping Power Company Chairman, TCC International Holdings Limited Chairman, Taiwan Transportation and Storage Corp.

Chairman, Kuan-Ho Construction and Development Corp. Chairman, E-One Moli Energy Corp. Chairman, Ta-Ho Maritime Corp. Chairman, Consolidated Resource Company Representative of Corporate Director, Taiwan Steel Chemical Corp. Chairman, Chai Hsin R.M.C Corp. Chairman, CTCI Corp. Independent Director, Synnex Technology International Corp. Excutive Director, O-Bank Fu Pin Investment Co., Ltd. Koo, Kung-Kai Master Degree in MFA Visual Communication Design , Rochester Institute of Technology Chairman, Heng Qiang Investment Co., Ltd. Chairman, Chairman, Chiao Tai Chairman, Heng Qiang Investment Co., Ltd.

Chairman, Chiao Tai Investment Corp. Director, Chinatrust Investment Co., Ltd

- 73 - Bachelor Degree in Industrial Information Management, National Cheng Kung University Investment Corp. Chairman, Chinatrust Investment Co., Ltd Director, Falcon Investment Co., Ltd. Director, Ho-Po Investment Corp. Director, Chi Cheng Investment Corp. Director, Sheng Kai Investment Corp. Chinatrust Investment Co., Ltd Chien, Wen Master Degree in Business Administration, Wharton School of the University of Pennsylvania CFO, Winbond Electronics Corp. Supervisor, Winbond Electronics Corp. General Manager, Cathay Securities Investment Trust Director, Jiantan Temple Foundation Supervisor, Chi Cheng Investment Corp. Supervisor, Chinatrust Investment Co., Ltd Supervisor, Ta-Ho Maritime Corp. Taiwan Cement Corporation Koo, Kung-Yi Master Degree in Business Administration, Wharton School of the University of Pennsylvania Vice Chairman,Investment Banking Division of Morgan Stanley Director, Taiwan Cement Corp. Director, Taiwan Prosperity Chemical Corp.

Director, Ho-Ping Power Company Director & General Manager, TCC International Holdings Limited

- 74 - List of Independent Director Candidates Name Education Past Positions Current Positions Chih, Ching-Kang Master and Ph.D, Princeton University Master, The University of Texas at Austin Bachelor, National Taiwan University Chief Architect, Global Procurement & Supply Chain of General Motors Company Director & IT Vice President, Orient Overseas Container Line Limited Senior Excutive, American Airlines Independent Non- Excutive Director, TCC International Holdings Limited Representative of Corporate Director, E-One Moli Energy Corp.

- Chen, Yao- Sheng Sanit John’s University Chemistry Chairman, CPC Corp. Chairman, CAPCO Co., Ltd Chairman, Taiwan Prosperity Chemical Corp. Independent Director, E-One Moli Energy Corp. Director, Taiwan General Terminal & Distribution Corp. Director, Taiwan VMC Corp. Director, St. John’s University Director, Ming Chuan University Ding, Yen Wei David COLLEGE LASALLE HOTEL&RESTAURANT MANAGEMENT General Manager,Regent Hotel Group Director & General Manager, Silks Palace Director & General Manager, FDC International Hotels Corp. General Manager, restaurant business of LDC Hotels and Resorts

- 75 - Annex 6:List of Releasing Director Candidates from Non-Competition Restriction Directors Current Positions within the Scope of the Company’s Business Taiwan Cement Corporation Representative: Chang, An-Ping Director, Taiwan Steel Chemical Corp. Chairman, Chai Hsin R.M.C Corp.

- 76 - Annex 7: Company Corporate Charter Articles of Association for China Synthetic Rubber Corporation Chapter 1. General Article 1 The company is organized in accordance with the provisions of the Company Act Corporation and related laws and regulations and named the China Synthetic Rubber Corporation. Article 2 The company’s business scope is as follows: 1. C801060 synthetic rubber manufacturing industry. 2. C804990 other rubber products manufacturing industry. 3. C804020 industrial rubber products manufacturing industry. 4. D101040 non-public power generation industry. 5. D401010 thermal energy supply industry. 6. F199990 other wholesale industry. 7. F401010 international trade industry. 8. F103010 feed wholesale industry. 9. F202010 feed retail industry. 10. C105010 edible oil manufacturing industry. 11. F102020 edible oil wholesale industry. 12. F203010 food and miscellaneous goods, beverages retailing industry. 13. IG01010 biotechnology services industry.

14. ZZ99999 in addition to the licensing business, business not prohibited or restricted by law can be engaged in. Article 3 The company may guarantee externally for business needs. Article 4 The company’s reinvestment is in accordance with the resolutions of the board of directors, the total investment may exceed 40 percent of the company’s paid-in capital. Article 5 The company is headquartered in Taipei City and may, if necessary, set up branches and factories at other locations both at home and abroad by a resolution of the board of directors.

Chapter 2. Shares Article 6 The total capital of the company is set at NT$10 billion, divided into 1 billion shares. Each share is worth NT$10, issued by many times. Article 7 The shares of the company are inscribed and signed or sealed by more than three directors, and are issued after being legally certified. The shares issued by the company are free from printing the share certificates, but it is necessary to contact the centralized securities safekeeping institutional organization to register. Article 8 The company’s share transactions are handled in accordance with the relevant laws and regulations and the regulations of the competent authority.

Article 9 Within 60 days prior to the regular shareholders meeting of each session, within 30 days prior to the interim meeting, or within five days prior to the reference date on which the company decides to distribute dividends and bonuses or other benefits, the transfer registration of shares is stopped. Chapter 3. Shareholders meeting Article 10 There are two kinds of shareholders meetings which are regular meetings and interim meetings:

- 77 - 1. The regular meetings shall be convened by the board of directors within six months after the end of each fiscal year. 2. The interim meetings shall be convened according to law when necessary. Article 11 Unless otherwise provided by Company Act, shareholders meetings are convened by the board of directors, chaired by the chairman. When the chairman is absent, the chairman designates a director as agent. When not specified, an agent is chosen by the directors. Article 12 The convening of the regular shareholders meetings shall be notified to all shareholders 30 days in advance. The convening of the interim meetings shall be notified to all shareholders 15 days in advance. The notice shall state the date, place and reason for the convening of the meeting.

Article 13 Except as otherwise provided in the Company Act, for resolutions of the shareholders meetings there must be shareholders present to represent more than half of the total number of shares, and shareholders’ voting rights must be agreed by more than half. Article 14 The voting rights of shareholders, except as otherwise provided in the Company Act, are one right for each share. Article 15 When a shareholder cannot attend the shareholders meeting in person for any reason, he or she will issue a power of attorney printed by the company with signature or seal, specifying the scope of the authorization and entrusting one agent to attend the meeting. Except for the trust business or the share agency approved by the securities regulatory authority, when a person is entrusted by two or more shareholders at the same time, the proxy voting rights which are more than the three percent of the voting rights for total number of issued shares shall not be counted. The power of attorney of the preceding subparagraph shall be delivered to the company five days before the shareholders meeting, and the first to be served shall be valid if there is a repeat. However, the statement to revoke the foregoing power of attorney is not limited to this. When the company convenes a shareholders meeting, they may exercise the voting rights in writing or electronically. The relevant exercise methods are governed by the Company Act and the regulations of the competent authority.

Article 16 Resolutions of the shareholders meeting shall be made into minutes, signed or sealed by the chairman, distributed to all shareholders within 20 days after the meeting, and shall be permanently saved in the company. The attendee registry of shareholders and the power of attorney for representing the attendance shall be retained at least one year. But if there is a lawsuit, they should be saved until the end of the lawsuit. The distribution of the minutes of the preceding subparagraph shall be governed by the Company Act and related regulations. Chapter 4. Directors, Audit Committees and Managers Article 17 The company shall set up seven directors, each with a three-year term. The election of directors adopts the system for nominating candidates, elected from the list of candidates for directors by the shareholders. If re-elected, they can be reappointed. Of the above-mentioned director quota, three are independent directors. The election of independent directors shall be elected from the list of candidates for independent directors by the shareholders meeting. The professional qualifications of the independent directors, shareholding, part-time restrictions, the determination of independence, the nomination and selection methods, and other compliance matters shall be handled in accordance with the relevant provisions of the competent securities authority. When the directors are elected, they shall

- 78 - follow the provisions of the Company Act. Independent directors and non- independent directors should be elected together to calculate the elected number respectively. Article 18 The directors organize the board of directors with the following powers: 1. Draw up the business plan. 2. Draw up the allocation of surplus. 3. Draw up the capital increase or decrease. 4. Approve the important regulations and the contract. 5. The appointment and removal of the general manager. 6. Setup and abolition of branch company. 7. Examination and approval of budget and final accounts. 8. Examination and approval of real estate transactions and investment in other businesses.

9. Decisions on other important matters. Article 19 The board of directors shall have the attendance of more than two-thirds of the directors, and the consent of more than one-half of the directors, and then elect one of the directors as the chairman. Article 20 The board of directors shall be convened by the chairman. Except as otherwise provided in the Company Act and this Articles of Association, the exercise of resolution shall need the consent of more than half of the directors present and consent by more than half of the directors present. Directors may entrust other directors to attend if they cannot attend in person for any reason. When the board of directors meet, if the video screen meeting is adopted, the directors participate in the video conference, and it is deemed to be present in person.

The board of directors is convened by notifying method in writing, the E-mail or fax. Article 21 The board of directors shall be chaired by the chairman. When the chairman takes leave or is unable to exercise his power for any reason, he shall appoint one director as the agent. If no agent is designated, the directors shall choose one person as agent among each other. Article 22 The company sets up an audit committee and may set up other functional committees. The audit committee is composed of all independent directors, and its number shall not be less than three. One of them shall be the convener and at least one shall have accounting or financial expertise.

The resolution of the Audit Committee shall be subject to the agreement of more than one-half of all members of the Audit Committee. The exercise of their powers and other matters to be observed shall be handled in accordance with the provisions of relevant laws and company regulations. When an independent director member of the audit committee exercises his duties, he should sign or seal the books and statements checked or consulted, and report to the shareholders meeting. From the date of establishment of the Audit Committee in 2012, the Audit Committee or members of the Audit Committee shall be responsible for the enforcement of the supervisory authority provided in Company Act, Securities Exchange Act and other laws.

Article 23 The board of directors is authorized to agree on the remuneration of the directors of the Company according to the participation extent and contribution value of the

- 79 - directors to the operation of the company and the usual level of payment of the domestic and foreign peers. Article 24 The company may, within the term of office of the directors, purchase liability insurance for their scope of business and liability for compensation according to law. Article 25 The company sets up a general manager to handle all business of the company according to the articles of association. Chapter 5. Accounting Article 26 The company’s fiscal year starts from January 1 to December 1 of the same year. Article 27 At the end of each fiscal year, the board of directors shall make various statistical forms in accordance with Article 208 of the Company Act, and submit them to the regular shareholders meeting for recognition in accordance with the legal procedures.

Article 28 If the company is profitable for the year, it shall provide: (1) Compensation for employees: 1/10,000 to 3%. (b) Directors’ remuneration: not more than one percent. However, when the company still has accumulated losses, it should reserve the amount of make-up in advance, and then remunerate the employees and the directors according to the ratio of the foregoing first paragraph and the second paragraph. Employee remuneration can be obtained from shares or cash, and the recipients may include the employees of the subordinate company that meets certain conditions.

The distribution of remuneration of employees and directors shall be made by the board of directors with a resolution of more than two-thirds of the directors present and consent of more than half of directors present, and it shall be reported to the shareholders meeting. Article 29 The company’s annual net earnings from the final settlement, in addition to paying the legal income tax, and to making up for the accumulated losses, 10% is allocated as statutory surplus reserve, but when the statutory surplus reserve has reached the total amount of paid-in capital of the company, it can no longer be contributed. The rest adds up to the cumulative undistributed surplus. When necessary, after contributing and reversing the special surplus reserve or discretionarily retaining the surplus in accordance with relevant laws and regulations, the common share dividend shall be distributed again on the balance, and for the distribution ratio, the board of directors shall formulate the surplus distribution case and submit to shareholders meeting to resolve in accordance with the dividend policy in subparagraph 2 of this Article. In order to improve the financial structure, enrich working capital or to meet the needs of important investment plans, the surplus may be converted into capital distribution share dividends, but the cash dividend payment ratio is set at more than 20% of the ordinary share dividends.

Article 30 The distribution of dividends of shareholders shall be limited to the shareholders who are recorded in the shareholder list on the dividend reference day. Chapter 6. Annexes Article 31 The company’s Articles of Association for organization and working detailed rules are set separately.

- 80 - Article 32 If there are any unfinished matters in this statute, it shall be handled in accordance with the Company Act and relevant laws and regulations. Article 33 The Articles of Association were established on May 16, 1973 and The 1st amendment on December 5, 1973 The 2nd amendment on May 30, 1975 The 3rd amendment on April 26, 1977 The 4th amendment on September 29, 1981 The 5th amendment on June 28, 1983 The 6th amendment on March 19, 1985 The 7th amendment on March 7, 1986 The 8th amendment on May 5, 1987 The 9th amendment on April 14, 1989 The 10th amendment on April 27, 1990 The 11th amendment on April 23, 1991 The 12th amendment on May 5, 1992 The 13th amendment on May 14, 1993 The 14th amendment on April 19, 1994 The 15th amendment on May 21, 1998 The 16th amendment on June 30, 1999 The 17th amendment on June 15, 2000 The 18th amendment on October 17, 2000 The 19th amendment on June 26, 2002 The 20th amendment on June 10, 2003 The 21th amendment on June 15, 2004 The 22th amendment on June 24, 2005 The 23th amendment on June 19, 2008 The 24th amendment on June 25, 2010 The 25th amendment on June 10, 2011 The 26th amendment on June 27, 2012 The 27th amendment on June 24, 2014 The 28th amendment on June 24, 2016

- 81 - Annex 8:Regulations for China Synthetic Rubber Corporation Director Elections Amended and adopted by the shareholders meeting on June 27, 2012 Article 1. In accordance with the provisions of the Company Act, the company's Articles of Association and related laws and regulations, these regulations are formulated. The election of the directors of the company shall be handled in accordance with these regulations. Article 2. In the election of the directors of the company, the single disclosed cumulative election method is adopted, and the names may be replaced by the share account number or attendance number.

If the election of the directors of the company adopts the nomination system for candidates as required by Articles of Association, it is in accordance with the procedures for the nomination system of the Company Act and the provisions of relevant laws and regulations. Article 3. In the election of directors of the company, each share shall have the same voting power as the number of directors to be elected in accordance with voting rights. The board of directors shall prepare the ballots with the same number as the directors for each shareholder and one person may be elected or several persons may be elected by allocation.

Article 4. The directors of the company shall calculate the voting rights of independent directors and non-independent directors according to the quotas prescribed in the Articles of Association. The ballots representing the higher voting rights shall be elected respectively. If there are more than two persons who have the same rights and exceeded the prescribed quota, those who get the same rights shall draw lots to decide. The chairman draw lots on behalf of those who did not attend. The qualifications and selection of independent directors of the company shall be handled in accordance with the “Securities Exchange Act,” “Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies,” “Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies,” and the relevant provisions of the concerned authority. Article 5. When preparing a ballot, the board of directors should complete the shareholder account number or the attendance number and voting right number. Article 6. At the beginning of the election, the chairman shall appoint the scrutineers and the tellers to open the ballot box.

Article 7. The ballot box is prepared by the board of directors and is opened by the scrutineers in public before the vote. Article 8. The elector must specify the account name of the candidate and the account number of the shareholder in the “candidate column” of the ballot. If not a shareholder, the elector must specify the name and ID card number of the candidate. When the government or legal person shareholder is the candidate, the name of their representatives may be filled in. The representative of each ballot is limited to one person. Article 9. Ballots that have one of those circumstances on the left are invalid: 1. Ballots as specified in this regulation are not used. 2. Blank ballots are cast in ballot box. 3. The writing is obscure and illegible or has been altered.

- 82 - 4. The candidate account names do not match the shareholder's name list. If the candidate filled in is not a shareholder's identity, the name and identification card number are not matched by verification. 5. The same ballot has listed two or more candidates. 6. In addition to the account names of the candidates (name) and the shareholder's account number (identification card number), the other characters are written. 7. Those who do not fill in the account name (name) of the candidate or shareholder account number (identification card number). Article 10. In the election of the directors, a ballot box shall be set up. After the voting, the scrutineer and teller shall jointly open the ballot box on the spot. Article 11. The counting of votes is supervised by the scrutineers and the results of the balloting are announced by the chairman on the spot.

Article 12. These regulations shall be implemented after adopted by the shareholders meeting, which apply to any amendments thereto.

- 83 - Annex 9: Directors’ Shareholding Status Benchmark date: April 28, 2018 Title Name Appointment date Number of shares held at the time of appointment Shares currently held Number of shares Accounting for % of the stocks issued at the time Number of shares Accounting for % of the stocks issued at the time Chairman of the board Taiwan Cement Corporation Representative: Chang, An-Ping 2015.06.24 48,213,344 8.78% 55,180,171 8.78% Director Taiwan Cement Corporation Representative: Koo, Kung-Yi 2015.06.24 48,213,344 8.78% 55,180,171 8.78% Director Fu Pin Investment Co., Ltd. Representative: Koo, Kung-Kai 2015.06.24 9,833,748 1.79% 11,254,724 1.79% Director CTBC Venture Capital Company Representative: Chien, Wen 2015.06.24 24,762,605 4.51% 28,340,800 4.51% Independent directors Chen, Yao-Sheng 2015.06.24 0 0.00% 0 0.00% Independent directors Chih, Ching-Kang 2015.06.24 0 0.00% 0 0.00% Independent directors Hsieh, Chen-Chung 2015.06.24 0 0.00% 0 0.00% Total 82,809,697 94,775,695 Total shares issued on June 24, 2015: 549,224,105 Share Total shares issued on April 28, 2018: 628,586,987 Share Note: 1. The total number of shares that directors of the Company should legally own is 20,114,783 shares. As of April 28, 2018, the directors hold 94,775,695 shares. 2. The Company has established an Audit Committee; therefore, rules stipulating the number of shares legally owned by the supervisor do not apply.

- 84 - Annex 10: The Impact of This Stock Grant on the Company's Operating Performance, Earnings per Share, and Shareholders' Return on Equity: Year end Item 2018 (estimate) Capital paid at the beginning of the period NT$6,285,869,870 Distribution of interest for this year Cash dividend per share NT$1.80 Surplus to capital increase shares allocated per share 0.1 shares Capital reserve to capital increase shares allocated per share 0 shares Changes in business performance Operating income Not applicable (Note) Operating profit increase (decrease) ratio over the same period last year Notes Post-tax net profit Post-tax net profit increase (decrease) ratio over the same period last year earnings per share Earnings per share increase (decrease) ratio over the same period last year Annual average return on equity (annual average PE ratio) Pro forma earnings per share and P/E ratio Change the distribution to all cash dividend in case of surplus to capital increase Pro forma earnings per share Pro forma average annual return on investment If capital reserve to capital increase has not yet been undertaken Pro forma earnings per share Pro forma average annual return on investment If capital reserve has not been undertake and profit reinvestment was changed to cash dividend and distributed Pro forma earnings per share Pro forma average annual return on investment Note: The Company has not produced and announced the 2018 financial forecast. Based on Letter No. 00371 issued by the Securities and Futures Bureau, Ministry of Finance dated February 1, 2000, there is no need to disclose such information.

- 85 - MEMO

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